Autumn Statement 2011

As the UK recovers from the most severe financial crisis in generations, the Autumn Statement 2011 could only focus on one objective; strengthening the economy.

As expected, the Office for Budget Responsibility downgraded its growth forecasts, and revealed that Government debt is higher than expected; meanwhile the sovereign debt crisis in Europe adds external pressures over which we have little control.

As a result, announcements spanned from protective measures such as raising the state pension age to reflect an ageing society, to the much anticipated credit easing, designed to reduce the cost of loans to small businesses and easing access to funding.

Other significant announcements included the National Infrastructure Plan, which will see up to £30 billion of new capital investment pumped into the key challenges in energy, transport, telecommunications, waste and water, while a new housing strategy looks set to ease lending to first time buyers.

This area of our website provides a concise summary of the announcements made in the Autumn Statement. Please read our reports using the links provided, and contact us if there are matters arising that are pertinent to you or your business.

The economy

The Chancellor introduced his Autumn Statement against the background of a global economy still struggling to recover from the credit crunch and recession. While officially we are not technically in recession the reality is that many small businesses perceive that the seemingly ever-decreasing money supply is restricting the ability of many businesses to deliver real increases in growth - both in the top and bottom lines.

Business finance

The Autumn Statement 2011 saw a series of announcements affecting business finance.

Pensions

Information on state pensions, asset-backed pensions, pension funds and infrastructure funding arising from the 2011 Autumn Statement.

Tax credits

The planned £110 above inflation increase to the child element of the Child Tax Credit will be scrapped and the Government will also not uprate the couple and lone parent elements of the Working Tax Credit in 2012-13.

Housing

The last few years have been marked by a relatively stagnant housing market with prices generally flat in the midlands and north, Scotland, Wales and Northern Ireland while prices have increased in the south east.

Travel

Information on fuel duty, rail fares, and air passenger duty (APD) arising from the 2011 Autumn Statement.