AUTUMN STATEMENT 2014 OVERVIEW All eyes were today fixed on the Chancellor and his announcements from the despatch box. With only 154 days left until the next General Election, politicians of all political persuasions continue to face pressure to announce measures that are of interest to the electorate. The challenge however is the same today as it was at the beginning of this Parliament: how to appeal to the electorate during a time of austerity. Whilst a broad range of commentators, including both politicians and economists, will continue to disagree on the figures set out today, the Chancellor today placed his focus on one single clear message: “stay the course” with this Government and give us another five years. Restating his concerns about the challenges facing the international economy, the Chancellor aimed to demonstrate that this Government is on the side of voters. Reissuing his commitment to a Northern Powerhouse was combined with
POLITICAL REACTION Ed Balls
Shadow Chancellor “Tory borrowing plans are in tatters… Every target missed, every test failed, every promise broken.”
Douglas Carswell
UKIP MP “Tinker, tweaks and complicated tax relief rules. Just like Gordon Brown.”
Gaby Hinsliff
Guardian Columnist “That #as2014 in brief: everything is awesome, except where it isn’t, which must be Abroad’s fault. Buy a house. Please please buy a house.”
Faisal Islam
Political Editor, Sky News “So @KlassMyleene what do you think about 12% stamp duty on £2m garages?”
The Sun “Great news for White Van Man as Osborne says: “We have cut fuel duty and we will keep it frozen.” Tom Whipple
voter friendly announcements around stamp duty and fuel duty. These were balanced with new taxes on both banks and tech companies. He also took the opportunity to remind us of stories that have dominated this week’s press including announcements on housing, flood defences, roads and NHS investment. Despite the many announcements stretching across a broad range of departments, the message was simple. The UK economy is growing faster than most developed economies. This Government has delivered higher growth, a fall in unemployment and a decline in inflation, it would now be unwise to change course when the job is only half completed.
Gurpreet Brar
THE HEADLINES ECONOMIC GROWTH The UK’s economic growth will be the strongest in the G7 this year, with the forecast for 2015 revised up from 2.7% to 3% by the independent Office of Budgetary Responsibility (OBR).
THE DEFICIT Defying predictions, the deficit is projected to fall to £75.9bn in 2015, £40.9bn in 2016, £14.5bn in 2017 before reaching a £4bn surplus in 2018.
NHS FUNDING Widely trailed earlier this week, the Chancellor has announced that the NHS will benefit from £2bn of extra funding every year until 2020, with an additional £1.2bn in funding for GP Services from foreign exchange manipulation fines imposed on banks.
ROADS INVESTMENT The Treasury has announced details of how more than £15bn is to be spent on revitalising the UK road network. The plans include 84 new schemes, creating 1,300 “additional lane miles”, upgrading five airport links and creating 12 new expressways.
NORTHERN POWERHOUSE
Times Science Correspondent “We are moving home next week. Osborne just saved us £400. I’m calling our new fridge freezer George.”
In his statement the Chancellor championed his plans to “build a northern powerhouse” and confirmed that a new Sovereign Wealth Fund for the North will be created from the proceeds of shale gas exploration.
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