Welcome to the 2012 Autumn Statement Newsletter from Connolly Accountants & Business Advisors

Chancellor George Osborne delivered his 2012 Autumn Statement to the House of Commons against a background of global economic uncertainty. Dubbed a 'mini-Budget' by the media, the Statement included a number of significant measures affecting individuals and businesses.

As predicted by economists, the Chancellor announced that growth will be slower and borrowing levels higher than previously anticipated. The Office for Budget Responsibility has significantly downgraded its growth forecasts, and the Chancellor has been forced to extend the austerity measures to 2018.

Despite the economic gloom, Mr Osborne argued that turning back now would spell 'disaster' for the UK economy. Keen to emphasise that high earners would bear their 'fair share' of the load, the Chancellor confirmed speculation that the annual cap on tax-free pension contributions will be cut to £40,000. Further significant announcements on personal taxation include an additional increase in the basic personal income tax allowance from April 2013.

Meanwhile, in a bid to encourage enterprise and investment, the Chancellor announced an additional 1% cut in corporation tax from April 2014, an increase in the Annual Investment Allowance limit from £25,000 to £250,000 for a two year period, and the creation of a new £1 billion Business Bank.

One further measure likely to be welcomed by both individuals and businesses was the cancellation of the 3p a litre rise in fuel duty planned for January 2013.

For a detailed overview of the Autumn Statement, visit our summary here.

What They Said

It's taking time, but the British economy is healing… turning back now would be a disaster.

Chancellor George Osborne

Today after two and a half years we can see, and people can feel in the country, the true scale of this Government's economic failure.

Shadow Chancellor Ed Balls

The Chancellor has stuck to his guns on deficit reduction - avoiding deeper cuts or more borrowing in order to retain international credibility.

CBI Director General John Cridland

What is missing today is any vision of a future economy that can deliver decent jobs and living standards - it's pain without purpose.

TUC General Secretary Brendan Barber

To view the Autumn Statement in full visit:



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2012 Autumn Statement: the austerity drive continues
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