What could be announced?
With the Autumn Statement now just one week away, you may have already read some suspicions, predictions and rumours on what could be delivered on 25 November. Naturally, until the words are spoken by George Osborne, nothing can not be taken as gospel, however, have a read of our summary of some areas that are expected to arise next week.
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The Chancellor’s objectives
Osborne’s overall plans are to deliver to a £10 billion surplus by 2020. Many are still dubious of how he plans to turn the current deficit into a surplus in the next 5 years, however the Autumn Statement is expected to deliver the Government’s Comprehensive Spending Review showing spending projections from 2015.
The Office for Budget Responsibility (OBR) will make their announcement on 25 November also, passing comments on the aspirations of Mr Osborne and whether a surplus is achievable in the timeframe.
Tax credits
One of the expected topics for address in the Autumn Statement is tax credits, following much controversy on previously announced cuts.
The cuts proposed to working tax credits and child tax credits would have equated to an estimated £4.4 billion in savings.
Mr Osborne has suggested he will be announcing a means to ease the transition to lower tax credits.
Tax on fuel
Following the recent Volkswagen scandal, there has been a hint that Mr Osborne will be installing a small rise in the tax on diesel, perhaps by 1p or 2p, plus, potentially higher Vehicle Excise Duty Rates.
There have been campaigns against this potential decision, communicating that this would be “unfair” and “knee-jerk” and fuel tax should in fact be cut by 3p.
Housing
There is a likelihood that housing will be on the agenda on 25 November, following the pattern from previous announcements, Budgets and Statements and with the UK housing deficit high on the radar.
The renovation of old prison buildings has already been promised by Mr Osborne so further details on this and other housing initiatives could well feature.
Pensions tax relief
An expectation for further news on pension tax relief is rumoured to be still under consultation, so it could be the case of waiting until the 2016 Budget on this one.
Mr Osborne had suggested that a consultation would take place regarding taxing pensions in the same way as ISA’s.
Let’s see what next week brings with any further hints or news.
Tax avoidance
As always, clamping down on tax avoidance is a method the government plan to use to bridge the gap between deficit and surplus.
This time there could be a focus on companies paying consultants who work for them for longer than one month. This would be to ensure that Employers National Insurance is paid and calculations predict an additional £400 million could be reaped for the exchequer.
Business rates
Business rates continue to be suspect for major milestone announcements such as the Autumn Statement.
Devolution has been a focus of the Chancellor in his second term, indicating that ongoing fewer decisions should be made in Westminster and more power given to local constituencies.
“We’re expecting the Chancellor to use his Autumn Statement to announce the next wave of cities that will receive devolved powers and also to give more detail around local councils getting control of business rates.” David Brookes, a tax partner at BDO
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