On 25th November 2015, George Osborne, Chancellor of the Exchequer, delivered his Autumn Statement to Parliament. Osborne reviewed UK economic performance, set spending plans for the next four years and detailed important changes to taxation.
- A rise in the basic state pension: Beginning in April 2016, the basic state pension will rise to £119.30 per week.
- A reduction in the cost of green improvements: Beginning in April 2017, a new, cheaper energy supplier obligation will come into force in an effort to reduce carbon emissions. This is predicted to lower the annual energy bill cost by £30 from 2017.
- Details released about the Apprenticeship Levy: The Apprenticeship Levy will come into force in April 2017, at a rate of 0.5% of an employer’s pay bill. Additionally, the levy will only affect employers that earn at least £3 million annually.
- Expanded flood protection for homes: The government will spend an estimated £2.3 billion on more than 1,500 flood defence schemes across the country.
- Motorists will no longer be able to get cash compensation for minor whiplash claims: To reduce the number of fraudulent whiplash claims, the government is ending the right to cash compensation. Additionally, more injuries will be allowed to go through small claims court and the upper limit for these claims will be increased to £5,000. These changes are expected to reduce the annual cost for motor insurance policies by £40.he Office for Budget Responsibility (OBR) forecasts that GDP will grow 2.4% in 2015, 2.3% in 2016 and 2.4% each year after until 2020.
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