Main points of the Spending Review and Autumn Statement

By staff writers
November 25, 2015

The Chancellor has today set out the state of the economy in the Autumn Statement and his spending plans for the next four years in the Spending Review. The main points:

Main headlines

The  £4.4 billion planned tax credit cuts have been scrapped, with taper and threshold rates for working tax credits and child tax credits remaining the same

The government will therefore breach the overall welfare cap in the first years of this  Parliament

Total spending to rise from £756 billion this year to £821 billion by 2019-20

State spending will be 36.5 per cent, as a share of total output, in five years. Down from 45 per cent in 2010.

The verseas aid budget will increase to £16.3 billion by 2020. The Foreign Office budget will be protected in real terms

Day-to-day spending on transport, environment and energy will be cut by 37 per cent, 15 per cent and 22 per cent respectively

Defence spending will rise from £34 billion to £40 billion by 2020. More money for the security services

The economy

Growth forecast  2.4 per cent in 2015, unchanged from June

Growth forecast for the subsequent four years: 2.4 per cent, 2.5 per cent, 2.4 per cent and 2.3 per cent

Public borrowing, deficit

Budget surplus of £10.1 billion to be delivered by 2019-20

The borrowing to total is £73.5 billion this year, forecast to  fall to £49.9 billion, £24.8 billion and £4.6 billion in subsequent years

Debt forecast to be lower in 2015-16 than 2014-15 and to fall every year after that

Security, justice, police

No real-terms cuts to police budgets in England: forces will be expected to make efficiency savings by sharing resources

Holloway women's prison to close as part of modernisation of the prison estate, which includes the building of nine new prisons

Underused courts to be sold off, raising £700 million to be spent on new technology

Welfare and tax credits

The £12 billion targeted welfare savings are to be delivered in full

Job centres will be located in council buildings

Housing benefit for new social tenants will be capped at the same level as in the private sector

Housing benefit and pension credit payments to be stopped for people who leave the country for more than one month

The Department of Work and Pensions budget will be cut by 14 per cent

Health

NHS budget to rise from £101 billion to £120 billion by 2020-21

NHS to get cash injection of £6 billion in 2016

NHS in England expected to save £22 billion through efficiency savings

An extra £600 million for mental health services

Grants for student nurses will be scrapped and replaced by loans

Cap on training places for nurses scrapped, with the goal of increasing numbers by 10,000

New precept of up to two per cent on council tax to allow local councils to raise £2 billion for social care

Better Care Social Fund to be increased by 1.9 per cent

£15 million from VAT on sanitary products to be given to women's health charities

Housing, local government

Around £1 billion to be raised by a three per cent surcharge on stamp duty for buy-to-let properties and second homes from April 2016,

London Help to Buy scheme to offer interest-free loan worth up to 40 per cent of the value of newly built homes

Plans to hand billions to private developers to build 400,000 new homes in England

Restrictions on shared ownership to be removed, planning system reformed to permit more homes to be built

Councils will receive  £10 million to help homeless people

Local government to keep revenue from business rates by the end of the Parliament

Education

Schools budget in England protected in real terms

School funding formula to be phased out

New 30-hour free childcare subsidy for parents of three- and four-year-olds limited to people working more than 16 hours a week

Funding for Further Education colleges protected in cash terms

Business, science, environment

Extra £200 million funding for flood defence

Department for Business, Innovation and Skills funding cut by 17 per cent

Apprenticeship levy set at 0.5 per cent of employers' wage bill.  £15,000 allowance for all firms taking part

26 new enterprise zones

Uniform business rates abolished. Elected mayors allowed to raise rates under certain conditions

Science budget to rise in real terms to £4.7 billion

Infrastructure, transport and culture

Capital funding of transport projects increased by 50 per cent

Money for new road and rail projects will include the electrification of TransPennine, Midland Mainline and Great Western

£250 milion support for motorways in Kent to relieve effects of Operation Stack

Culture department funding cut by 20 per cent

Extra money for Arts Council and UK Sport

Free museum entry retained

Pensions, savings, personal taxation

State pension to rise by £3.35 a week to £119.30 in 2016

Individuals and small business to have their own digital tax account by the end of the decade

Proposals to raise £5 billion by cracking down on tax avoidance

Savings credit to be frozen at current level

[Ekk/4]

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