Autumn Statement 2013

[Wolfshade]

Firstly, what is it?

It is the second of two economic statements that the Chancellor gives (the other being The Budget).

The Chancellor will update the government on all matters to do with finance, so tax and spending. It also incorporates the Office for Budget Responsibility's (independent body) projections.

So what do we know?

Income Tax

The personal allowance will rise to £10,000 from April 2014, that is the amount of money you can earn tax free. It will then increase by the Consumer Price Index (CPI, an inflation measure) thereafter.

40% tax rate will apply to earnings above £41,866, this will then rise by 1% thereafter.

Married & Civil Partner Tax Break

Annouced at the Tory conference is set to cost £700m. Under the plans £1,000 of personal allowance could be transferred from one spouse to another, assuming neither is a higher rate taxpayer and one is earning less than the personal allowance. This could equate to a saving of up to £200. Though this still requires to go through a Commons vote.

Benefits

Ah the hot potato. These will rise by 1% for the next three years from April 2014 for a range of allowances. The benefits for disabled people and carers will increase in line with the cost of living (CPI).

Free School Meals

From the LibDem's Conference, all infant state school pupils will be given free school lunches from September (costing around £600m).

Pensions

The single largest expenditure of the government, outstripping benefits by some margin, but the sacred cow no one will touch. From April 2014 there will be a rise of 2.7% (the current CPI rate). This goes from £110.15 to £113.10 per week.

The maximums size a lifetime pension pot that can be accrued in a tax-advantaged scheme drops from £1.5m to £1.25m, also the annual allowance decreases from £50,000 to £40,000.

Savings

The Tax-Free ISA rate is set to rise from £11,520 to £11,880.

Fuel Duty

This again is cancelled, with the next schedled rise in September 2014, if that too doesn't get cancelled.

Alcohol Tax

Expected 2% rise for wines and spirits. Though Beer (Huzzah!) should be unaffected.

Energy

Changes to the green levies should (if these are passed on to customers) see an average reduction of £50 from the average dual-fuel bill.

As always we won't know anything concrete until it is announced from 11:15

[Mr Mystery]

Interesting.

Only really the Income Tax threshold and Beer that concerns me at the moment, as I am....erm....35 years off retirement (and have a pretty dashed awesome penion fund!).

More money in Mystery's pockets! HUZZAH!

£20 says Green Levies are pocketed and not passed on!

[Wolfshade]

IIRC they are a direct pass-through tax, so they are collected on behalf of the government so never touch the energy providers bank.

[Mr Mystery]

But it's whether or not they'll take the money previously diverted and just stuff it in their colossal piggy banks that seems to be the issue. And you just know they will. The greedy sods.

[Wolfshade]

Like how VAT reverted to 17.5% but prices stayed at the 20% level.

Fuel duty to stay fixed.

Coucils to sell of the most expensive council housing, not sure how that will help the "housing crisis".

[Mr Mystery]

VAT fell to 17.5%? When did that happen?

Or are you thinking of when it was dropped to 15%?

Housing crisis bit....if they fix the previous 'right to buy' mistake and ensure funds raised are spent on replenishing, this would make sense. Take whopping great houses. Flog them off. Take monies from that, build smaller domeciles which are more urgently required.

[Wolfshade]

Sorry yes, when it was dropped.

[Mr Mystery]

Ah gotcha.

GW did! Was a nightmare on the change in the till :p

And very, very pleased to see Capital Gains Tax applied to foreign housing owners in the UK. It's not only been driving housing prices up left right and centre, but also used as a sneaky way of making money without having to pay tax. Granted, they'll probably still be able to weasel out of most taxation from it, but hey, every little helps.

[Wolfshade]

Yes I think so.

Just have to sell the house through my Cayman Island corporation...

[AirHorse]

I'm not sure if I should get used to this or not. Bannockburn 2014 is getting closer every day :/

[Wolfshade]

Yes, enjoy your massive price hikes when you leave...

Actually, it appears the only one who wants independence is Salmond...

[AirHorse]

Pretty much. Its been U-turns on policies for the last few years as it gets closer to an actual vote on it and he realises the reality of actually dealing with it.

I will be shocked if it happens.

[Mr Mystery]

Not sure he really cares.

All he has ever promised is a vote on independence. And he's got it. Successful politician remains successful, win or lose this particular vote.

Fuel duty frozen into 2015.

[AirHorse]

Its funny, because its him that's been putting the vote off for ages.

No tax discs in cars :( !!! That's strangely disappointing lol!

[Mr Mystery]

He was wanting additional options, which naturally Herr Cameron, so worried about the decentralisation of taxation powers to Europe, denied, because apparently the centralisation of all taxation is right and good. If it's Wales, Scotland or Northern Ireland. But not if it's Europe. Because....stuff.

[Wolfshade]

That one would be interesting as it would require a change of law.

[lattd]

Sneaky coalition put a few great policies in that are funded up to the next general election but not after, so if they win again they keep them on and it shows they have a strong plan, if they loose and labour realise they have to cut the costs and those policies get cut well evil labour, coalition win either way.

[Wolfshade]

Would it not need Labour to have a plan other than to disagree with everything ;)

[Mr Mystery]

Interested to see what the Tories do next time the economy stalls. They've pretty much privatised all they can.

[AirHorse]

Would it not need Labour to have a plan other than to disagree with everything ;)

Don't say that, then politics will be ruined!

[Wildeybeast]

Glad my beer isn't going up, still narked about the stupidly unfair marriage tax break.

[Mr Mystery]

Glad my beer isn't going up, still narked about the stupidly unfair marriage tax break.

That's alright dude. We could marry each other for mutual financial benefit!

[Wildeybeast]

I didn't think we could yet?

[Mr Mystery]

Dunno. Probably.

[Wildeybeast]

Well, marginal financial benefit seems as good a reason as any to make a life long commitment. I'm in.

[DrLove42]

Glad my beer isn't going up, still narked about the stupidly unfair marriage tax break.

Yes. I'm annoyed about it. But only cos its done stupidly. One person has to be on wages less than the minimum taxable amount. So one person has to be on a wage below what is defined as the living wage. Or unemployed.

So its a stealth tax break to the unemployed really.

I like the changes to benefits being taken away without qualifications, but overall it seemed to be "hooray! we're doing better. So we're going to screw you all a bit more while we can"

We should be subsidising off shore wind farms, ebcause they're highly inefficient and break a lot, plus any profits the generate won't come back to us, they'll line the pockets of the same energy companies who are already shafting us

[Wildeybeast]

Well, that's even more stupid than I thought it was. As a single, professional man I've given up ever expecting any kind of break in a budget. I just consider myself lucky if they don't put up beer and petrol tax (though I don't actually object to them putting up petrol tax).