Unsurprisingly, the Office for Budget Responsibility (OBR) forecasts for growth have changed since the last figures were published in March. The prediction for 2016 is 2.1%, slightly higher than the 2% forecast in March 2016.
However, in 2017 growth is expected to slow to 1.4%, lower than the 2.2% predicted at the Budget in March.
Aside from economics, chancellor Philip Hammond’s first Autumn Statement was light on new announcements.
There was a focus on investment in infrastructure and innovation with money allocated for R&D, homebuilding and transport.
He also confirmed various measures announced at Budget 2016 including:
- an £11,500 personal allowance from April 2017
- corporation tax will fall to 17% by 2020.
The end of the Autumn Statement
The main surprise was that this was the final Autumn Statement.
From 2018 the Budget will move to the autumn. A statement responding to OBR forecasts will follow in the spring but the chancellor was keen to stress that it will not be a “major fiscal event”.
The following report summarises the announcements made by chancellor Philip Hammond during the 2016 Autumn Statement on 23 November 2016.