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Hammond delivers first and last Autumn Statement

Philip Hammond 620px

Chancellor Philip Hammond has delivered his last Autumn Statement as he shakes up the timetable for the Government’s economic and financial statements.

Hammond says: “No other major economy makes hundreds of tax changes twice a year and neither should we.”

He says the spring Budget in March will be the final one, and then the Chancellor will deliver an autumn Budget. Hammond this will allow tax changes to be considered ahead of the new tax year and provide greater Parliamentary scrutiny.

He says: “This is my first Autumn Statement as Chancellor.

“After careful consideration, and detailed discussion with the Prime Minister, I have decided that it will also be my last.

“Mr Speaker I am abolishing the Autumn Statement. Starting in autumn 2017, Britain will have an autumn Budget, announcing tax changes well in advance of the start of the tax year.

“From 2018 there will be a Spring Statement, responding to the forecast from the Office for Budget responsibility, but no major fiscal event.

“If unexpected changes in the economy require it, then I will, of course, announce actions at the Spring Statement, but I won’t make significant changes twice a year just for the sake of it.

“Mr Speaker, this is a long-overdue reform to our tax-policy making process and brings the UK into line with best practice recommended by the IMF, IFS, Institute for Government and many others.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Before we start congratulating anyone I think a closer look at some of the figures might be illuminating. By around 2020 we are estimated to have a total deficit of £2trillion. Our current GDP is around £1.6 trillion so the total deficit will be 25% more than our GDP. (Don’t assume GDP will rise. Over the past 5 years it has actually shrunk in real terms, due in no small part to our lamentable productivity). The estimate for 2016/17 is for a deficit of £68.2 billion. Our population is around 63 million. So if we take a billion as 1,000 million it means that every man, woman and child in the UK will be £1,082 in hock by April. For a family of four – you can do the maths. By 2020, assuming the population reaches 64 million and taking a trillion to equal 100 billion then each man, woman and child is down the pan for £3,125.

    Hardly surprising when you consider that 66% of our GDP is made up of private consumption. People spending what they don’t have.

    The bill for Brexit is estimated at around £60 billion. That’s £952 for every person. Sure it could be less, but it could also be more. There are thankfully only two of us in my family, but I certainly didn’t vote to blow nearly two grand on this nonsense.

    Not content with massaging and hiding the figures he then has the effrontery to crow about this ‘wonderful’ 2.2% bond. I have no idea whether it is taxable, but it will be tied up for three years and it looks like the interest is only payable at the end of the term. In addition you are limited to £3k. According to my maths (and assuming compounding and no tax) this equates to a total of just over £200. Whose life will that change? And consider that inflation is due to rise to 2.5%, you are not even making a real return. Additionally it is highly likely that interest rates will soon rise anyway. So these punters will be stuffed all ways round.

    Chancellors’ addiction to stealth taxes remains unabated. IPT which started out at 5% is now 12% and motor insurance is compulsory!

    Successive chancellors are like the alcoholic who keeps telling everyone he is going on the wagon, but first just one more double whiskey, then honestly I’ll give up.

  2. Correction to above.

    I had assumed that an American Trillion was a hundred million when in fact both UK and US Trillion is a thousand million(A million million – 12 zeros).

    Therefore each man, woman and child is down the pan for £31,250. How on earth will we ever pay that back! And then look at the interest that is payable on this stupendous amount – around £60 billion per annum.

    Therefore

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