The Chancellor George Osborne will deliver his first autumn statement since the general election this afternoon.
Commenting ahead of the statement, John Cridland, director general of the Confederation of British Industry, said that “businesses recognise that the public purse is under pressure, which is why they want the Government to continue tackling the deficit, alongside targeted, affordable measures to keep UK growth motoring now, in the next Parliament, and beyond.”
Ahead of his statement to the House of Commons, here are some potential measures that have got people speculating.
The Chancellor’s plans to reduce tax credits were halted by the House of Lords, as the government continues to tackle the deficit. Proposed cuts would have saved £4.4 billion on working tax credit and child tax credit from 2016.
Dr Adam Marshall, executive director of policy at the British Chambers of Commerce, said the government’s reform of business rates have “stalled”:
“The current system discourages investment in premises improvements, plant and machinery, and places a crippling financial burden on many businesses.
“We are long overdue meaningful reform of the operation and administration of business rates.”
Latest figures from the Office for National Statistics show that economic growth has slowed down in the third quarter of 2015. GDP grew by 0.5% between July and September, whilst inflation remained negative at -0.1% in October.
John Allan, national chairman of Federation of Small Businesses commented that “improving productivity performance is critical for the health of the economy, with more investment in skills, science and innovation.”
The Chancellor has stated that his autumn statement would include a “long-term investments for the future”.
The government are considering new measures to further crack down on tax avoidance.
New measures could raise as much as £400 million for the exchequer, with consultants requiring moving onto a company’s payroll if their network lasts more than one month. This will ensure that the companies make their employer national insurance contributions.
State pension rates
The new state pension comes into effect on 6 April 2016. It’s expected that the new “flat rate” of £155 will be introduced in the new year . These rates are due to be announced in The Chancellor’s autumn statement.
We will publish summaries of the Chancellor’s announcements after he has presented the autumn statement to the House of Commons.