Chancellor’s Autumn Statement

By: Lindsay Plumpton

Communications Leader

Friday 07 December 2012

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It’s the second biggest economic event in the Government’s calendar and this week George Osbourne made a series of important announcements in his Autumn Statement.

Notably, the Chancellor stated that the Government will miss its own debt targets as the tougher economic conditions mean that it will take 4 rather than 3 years for debt to fall. However, he remained confident about the future and opened by saying that “it’s taking time but the British economy is healing” and that Britain is “on the right track.” He also reminded us that the UK has a greater proportion of people in work than the US or the Eurozone average.

Other relevant announcements included:

State benefits will be capped at £110.15 a week, so that ‘it will always pay to work’.
Schools will have freedom to set their own pay levels for their teachers based ‘on their performance’.
There will be further efficiency savings in schools and NHS.
Departmental budgets will be cut by 1% next year, 2% year after. Local Government cut by 2% in 2014.
Government spending will be aligned with local business communities.
There will be £600m more for science research infrastructure, £270m to improve FE Colleges and £1bn to invest in 100 new free schools and academies.

A further spending review will follow in the first half of 2013.

Let us know your thoughts on the announcements.

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Authors

Lindsay Plumpton

Communications Leader
96 posts
David Grailey

Chief Executive
79 posts
Andrew Gladstone-Heighton

Policy Leader
75 posts
Esme Winch

Managing Director
35 posts
Michael Lemin

Policy and Research Manager
25 posts

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