Thursday, 26 November 2015

The Autumn Statement

George Osbourne delivered his first Autumn Statement as a Conservative Chancellor. Of course, it isn't his first Autumn Statement, but all the previous ones were in a coalition.

So, was it good or bad news? We thought we might write a brief summary of things for you, so you can decide.

Digital Tax System

Not new news, but the investment of 1.3bn is. All small business will have access to it by 2016/2017.

Most businesses, including self employed and landlords, will be required to track their taxes digitally and inform HMRC quarterly by 2020.

From 2017 a new levy of 0.5% on apprenticeships will be introduced. There will be an allowance of £15,000 to offset the levy, essentially meaning the vast majority of employers won't pay.
There will also be a new business led body to oversee the creation of 3 million apprenticeships, led by Sajid Javid, the Business Secretary.

Business, Innovation and Skills
The Department fro Business, Innovation and Skills will have to absorb a 17% reduction in budget.
The Chancellor announced that by 2019/2020, the government will be spending over £6bn per annum on helping parents with their childcare costs.
The support has been limited to parents earning less than £100 000 and a minimum income level equivalent to 16 hours.

26 Enterprise Zones

The Enterprize Zone initiative will be expanded by 26 new sites. Over 1/3 of these will be part of the Northern Powerhouse.

R&D grants and loans

£165m in new loans will be offered, replacing several grants, copying the French model.
There was of course many other things like no cuts to the Police Budget, changes to the buy to let and second homes stamp duty, scrapping the planned changes to the tax credit system, 

On the whole, it has been seen as a positive statement from the Chancellor, but as always, the devil is in the detail.

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