Autumn Statement

Here are some of the main points from the Autumn Statement:

1. The Office for Budget Responsibility says public finances are set to be £27bn better off by 2020 than forecast – this should make Osborne’s aim of achieving a budget surplus by 2019 slightly easier.
2. Osborne pulled out another surprise by announcing a real term protection of police budgets in England and Wales, with spending to rise by £900m by 2020. This was a smart political move in light of the recent events in Paris and the fact political opponents would have used this against the Government.
3. Policing, health, education, international aid and defence budgets have all been protected – we knew they would be before the announcement but Osborne managed to find money to increase some of the budgets too.

1. Osborne took steps to court the women’s vote by announcing that the £15m raised from charging VAT on sanitary products will be given to women’s health charities and charities focusing on domestic violence. The UK charges 5% VAT on these products (the lowest we are able to under EU law) and Osborne explained this was the best interim solution whilst the Government negotiates with the EU.
2. In a clear signal that Osborne wants to position himself as not being a chancellor for the rich, he announced a new 3% surcharge on stamp duty for buy-to-let properties and second homes from April 2016. This will not make him popular with a lot of core Conservative voters but may swing floating voters over to him.
3. Osborne confirmed that the state pension to rise by £3.35 a week to £119.30 next year (although we already knew this from previous statements).