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UK Autumn Statement

November 2011

The Chancellor of the Exchequer delivered his Autumn Statement on 29 November 2011. This is primarily concerned with spending decisions and economic policy rather than tax matters. However, the Chancellor’s speech, and the accompanying 98-page report presented to Parliament, contained reference to a number of tax matters as follows:

  •  Forecasts do not predict recession in the UK - but debt challenge larger than expected.

  • Public sector pay increases capped at 1% for 2 years after freeze.

  • Pension credit increased by £5.35. State Pension increased by £5.30. From 2026 the State Pension Age will rise from 66 to 67.

  • New National Loan Guarantee Scheme - £20 billion will be available over next 2 years.

  • Bank levy to increase by 10% to 0.088% from Jan 2011.
    Funding extra £5bn on infrastructure over next 3 years through pension schemes.

  • New R&D tax credit to be introduced in 2013.

  • Capital allowances of 100% for certain Enterprise Zones.

  • Corporate tax rate to decrease to 25% in April 2012.

  • 50% tax relief for investors in small start-up businesses, plus capital gains tax relief.

  • Capital gains tax exempt amount frozen for next year.

  • Extra £1.2bn for schools. £600m for 100 new free schools. Double number who receive free nursery care.

  • Rail fare increases limited to RPI plus 1%.

  • 3p fuel duty rise in Jan 2012 cancelled & August increase reduced from 5p to 3p.

    For more detailed information - visit the UK website

Related links

UK website

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