From this announcement
The date for the Autumn Statement is set for 23 November, where Philip Hammond, the Chancellor of the Exchequer, will deliver his first address. Hammond may use this opportunity to cover off economic policy, post Brexit, however, he is expected to take a scaled down approach. What else is on the cards?
The Autumn Statement 2016
It is uncertain times so the news and views around the up-and-coming Autumn Statement is also a little uncertain.
On the 23 November the new Chancellor will detail what the government is planning to do, in order to keep the UK economy afloat. It will, as usual, include the latest financial projections from the Office for Budget Responsibility (OBR).
Market opinions are that Hammond wants to distance himself from the plans laid out by George Osborne, his predecessor. For example, Osborne promised a Corporation Tax cut to 15%, as a means of economic boost, however Hammond is more likely to rule in favour of a 17% corporation tax rate by 2020.
One thing Hammond seems to have made clear is that there would not be a sudden increase in public spending.
Infrastructure improvements
Rail, road repairs and flood defences have been mentioned as examples of smaller infrastructure projects that could deliver improvements to productivity, and would enhance long-term benefits to the public, and trade. These could be started quickly and would go towards growing the economy, plus catching up with other developed countries, where the UK is lagging.
It seems that investment will be a key topic during this year’s Autumn Statement, and the Chancellor wants to also focus on regaining investment in British businesses.
“All of this must change to build an economy that works for everyone. We need to close that gap with careful, targeted public investment in high value infrastructure… …and encouragement of more private investment in British businesses.” The Chancellor
Shortage of affordable housing
The issue with a lack of housing, particularly affordable housing, continues, and Hammond is aware this needs to be addressed in the Autumn Statement.
“…making housing more affordable will be a vital part of building a country that works for everyone.” Hammond
There is expected to be a £2 billion investment, plus a £3 billion home building fund, to contribute towards the housing crisis. Whether this will be enough, time will tell.
Overall, it is estimated that the Chancellor will have £40 billion at his disposal, to lift the UK economy. This is due to the Base Rate cut allowing government debt to subside.
Also, following many communications from both Theresa May and Phillip Hammond, it seems the previous focus on clearing the UK’s budget deficit by 2020, is now on hold. Efforts instead will be made on cutting the ties from Europe following the Brexit vote.
To this effect, significant tax changes and benefit cuts are unlikely in this Statement, as the new government have their eyes on other things.
Dental & Medical Financial Services provide a full Autumn Statement Summary following the announcement. This will be emailed to everyone on our mailing list, so look out for your free copy in your inbox, or SUBSCRIBE in the Footer.
Sample: 2015 Autumn Statement Summary Guide
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Dental & Medical Financial Services have been helping doctors and dentists with their finances for over 25 years. We have seen all peaks and troughs in the economy so know how to advise you. Please contact Darren to discuss your finances further.
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