In my bulletin this morning I we promised a followup on the Chancellor’s statement, it’s implications for the UK economy and any practical steps investors should take.
The Chancellor of the Exchequer delivered his 2011 Autumn Statement to Parliament today. Responding to the Office of Budget Responsibility’s update on the economic outlook, the Chancellor took the opportunity to set out what action the Government will take to protect the UK from global instability and build a stronger, more balanced economy for the future.
While maintaining the Government’s intention to reduce spending, his key announcements were clearly driven by the Government’s desire to provide further support to businesses, including new investment in infrastructure and opening up new sources of finance, plus helping households and businesses cope with the current high levels of inflation, and supporting social mobility. Specific announcements included:
- A new Enterprise Investment Scheme for business angels with 50% tax relief, combined with a freeze on the Capital Gains Tax threshold
- A £40bn lending increase to SMEs
- An increase in the banking levy
- Reinvigorating the right to buy for social tenants, with a 50% discount, and
- An acceleration of increase in State Pension age to 67 for both men and women.
Therefore, in the event there is little of consequence to report!