Osborne presents Autumn Statement 2011
Summary
With the objective to stabilise the UK economy, Chancellor of the Exchequer George Osborne announced to Parliament the Government’s revised plans in the ‘Autumn Statement 2011’ (Cm. 8231).
Actions outlined in the document cover three target areas: protecting the economy; building a stronger economy for the future; and fairness.
The Statement details plans for:
- public spending in 2015-16 and 2016-17;
- raising state pension age to 67 between 2026 and 2028;
- setting public sector pay awards at an average of 1% for each of the two years after current pay freeze ends; and
- £21 billion credit easing measures to support smaller and mid-sized businesses.
To build a stronger economy, the Government is funding £6.3 billion of additional infrastructure spending, £1 billion of private sector investment in regulated industries will be supported by Government guarantee, and the Regional Growth Fund for England will be increased by £1 billion.
Other measures on credit easing and enterprise include:
- up to £20 billion National Loan guarantee Scheme;
- investigation of alternatives to tribunal hearings;
- possible changes to collective redundancy processes;
- two proposals for radical reform of employment law; and
- a Seed Enterprise Investment Scheme offering 50% income tax relief on investments.
Education will see an extra £600 million to fund 100 more free schools, and £600 million for local authorities with the greatest demographic pressures.
Housing support includes a new build indemnity scheme to increase the supply of affordable mortgage finance and a revised right to buy scheme.
Fairness measures cover fuel duty, rail fares, a Youth Contract worth £940 million, and extending the offer of 15 hours free education and care a week for disadvantaged two year olds.
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