Chancellor George Osborne will set out the formula for linking state pension age rises with longevity and bring forward some of the increases already announced.
The rise in the state pension age to 66 by 2020 and 67 by 2028 will remain but the rise to 68 will be brought forward to 2035, from 2046, and the rise to 69 will happen by around 2048, Osborne will say in today’s Autumn Statement.
Reports say George Osborne will signal the UK could be in a budget surplus by 2018-19, two years earlier than suggested in the March Budget.
He will also publish research estimating that cuts to corporation tax are partially self-funding, with the Government gaining £6 in new taxes for every £10 spent on the cuts.
The Office for Budget Responsibility is expected to almost double its growth forecast for this year, up from the 0.6 per cent this year and 1.8 per cent next year stated in the March Budget.
The Bank of England is now predicting 1.6 per cent and 2.8 per cent growth in 2013 and 2014 respectively.
Improved growth prospects and lower borrowing figures will dominate the headlines but there may be other changes affecting financial planning.
Stay tuned to the Money Marketing website from 11.15 this morning for the latest news and analysis on the Autumn Statement.
Given the better than expected growth forecasts, lobbyists have been busier than usual trying to convince the Government of their particular causes. Below we list some of the predictions and wishlists.
The pensions tax-free lump sum and lifetime allowance are in the Government’s sights as the clamour for reform grows.
Labour, Liberal Democrats and many Conservatives are in favour of further cuts to tax relief for wealthier individuals.
The Confederation of British Industry is also calling for changes to The Pensions Regulator’s rules and practices to minimise the negative impact for employers’ funding defined benefit schemes.
The Government has been floating a £100,000 cap on Isas but it is also considering widening the qualifying schemes.
Last year’s Autumn Statement saw the Government consult on including Aim stocks in an Isa wrapper. This year could see peer to peer lending included but only once it is fully regulated after next April.
Deputy Prime Minister Nick Clegg wants the income tax personal allowance raised to £10,500 and the Conservatives have signalled their support.
The Government is already committed to introducing a transferable £1,000 married tax allowance for lower rate taxpayers.
The Free Enterprise Group of 32 Conservative MPs want the 40p tax band to be raised from £41,450 to £50,000, costing £5bn.
The Treasury is expected to introduce capital gains tax on foreign buyers in a bid to cool the London property market.
The Bank of England has pulled Funding for Lending support for mortgages but Help to Buy scheme is pressing ahead.
The Council of Mortgage Lenders and Building Societies Association are also calling for reforms.
The Government is coming under fierce pressure to help small businesses with rate increases.
The CBI is calling for action on rates, the Free Enterprise Group wants a three year freeze and Labour would cut rates funded by corporation tax increases.
The Government has revealed plans to bring some green levies on household energy bills into general taxation, costing £1.7bn.
Some suppliers say they will pass on the £50 cut to household bills next year. The change is widely seen as a response to Labour’s pledge to freeze bills from 2015 to 2017 if elected.
The move has led to calls for green levies to be reduced in other industries such as manufacturing.