Autumn Statement: What is on George Osborne’s agenda

Many business around the country are eagerly awaiting the unveiling of George Osborne’s Autumn Statement and Spending Review at the House of Commons later today, as it is believed he will announce large spending cuts across a wide range of sectors.

The Autumn Statement and Spending Review:

The Autumn Statement is very similar to the Budget, which was announced back in March, as it provides an update on the Government’s plans for the economy. Whereas the Spending Review looks at how public money is spent across government sectors, including NHS, tax credits, pensions, housing and defence.

Although Mr Osborne is expected to speak at lunch time today, it is already believed that the biggest cuts will happen to the police, social care, local government, further education, renewable energy and welfare.

Osborne will reveal plans to cut £20bn from spending and £12bn from welfare, and set out how he will raise £5bn to counter tax avoidance and balance the nation’s books in five years.

A major part of the Chancellor’s speech will be focused on reforming tax credits, more specifically how he will cut £4.4bn from the tax credits bill next April.

Osborne is also expected to announce plans to build 400,000 new homes in England. Among these plans will be £4bn worth of funding for housing associations, local authorities and the private sector to provide 135,000 help-to-buy shared ownership homes, which allows people to buy a share in their home and then buy more shares over time as and when they can afford it.

Furthermore, the basic state pension will rise to £119.30 a week from April 2016, and Mr Osborne will showcase the £570 a year rise in his Autumn Statement. He will also announce details of a new “flat rate” pension for anyone reaching state pension age after April 6, 2016.

Mr Osborne’s Autumn Statement will also include plans for social care services and the NHS, police and funds for the country’s defence services. He has already announced that the Treasury, transport, local government and environment departments have already agreed to spending cuts.

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