George Osborne’s Autumn Statement Key Points

29 Nov 2011 Leave a Comment

by Paulette in Uncategorized Tags: ed balls, George Osborne's Autumn Statement, unemployment

Chancellor George Osborne today admitted that the UK was at risk of falling into recession but vowed to do “whatever it takes” to stop it from happening.  It came as official forecasts of UK economic growth were slashed by the Office for Budget Responsibility (OBR) today.

Delivering his keenly-awaited Autumn Statement to MPs, Mr Osborne said that the OBR blamed lower-than-expected growth on the sovereign debt crisis in the eurozone.

And the Chancellor told MPs:

“Much of Europe now appears to be heading into a recession caused by a chronic lack of confidence in the ability of countries to deal with their debts.”

He said that if this happens “it may prove hard to avoid one here in the UK” before adding:

“We will do whatever it takes to protect Britain from this debt storm while doing all we can to build the foundations of future growth.

The Deputy Prime Minister promises the Chancellor’s statement will be as fair as possible, but warns difficult decisions will still need to be taken.

#  The planned 3p rise in fuel duty in January is cancelled.
#  There will 1% cap on public sector pay rises for two years after the end of current freeze next year.
#  The Office for Budget Responsibility increases its estimate of the public sector jobs expected to be lost – now 710,000.
#  Borrowing is £112 billion more over the next four years than previous forecasts, but debt interest payments are £22 billion less than expected.
#  Labour says the Chancellor’s “Plan A has failed colossally” and that his economic plans are “in tatters”.
#  There will be below-inflation increases in some working tax credits, but other credits will rise in line with inflation.

Brendan Barber, of the Trades Union Congress, says there’s going to be “a massive squeeze on the living standards” of six million public sector workers.

# Free childcare places for 260,000 two-year-olds. £1.2bn for school building projects. 35 new infrastructure projects, including new rail lines and superfast broadband.

The Shadow Chancellor says George Osborne’s economic policy has “failed collossally”.

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