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George Osborne’s third economic statement of 2015 (and the fourth within 365 days) lacked the big
surprises and headline grabbing announcements we’ve recently come to expect from these occasions.
In a combined Spending Review and Autumn Statement, changes to government departmental budgets
dominated the Chancellor’s speech.
Day-to-day spending of government departments will fall by an average of 0.8% a year in real terms.
The transport (37%), energy (22%) and business (17%) departments are facing the largest cuts. The core
administration budget for culture, media and sport will fall by 20% but there will be increased funding for
the Arts Council and sport.
NHS spending in England will increase from £101 billion in 2015/16 to £120 billion by 2020/21,
including £6 billion next year. It is also expected to make £22 billion in ef"ciency savings in the next
5 years.
The economic news was largely positive. The combined effect of better tax receipts and lower debt
interest has resulted in a £27 billion improvement in public "nances compared to July.
The government will borrow £8 billion less than forecast and aims to have a budget surplus of
£10.1 billion by 2020.
GDP is forecast to grow by 2.4% this year and has been revised up from July to 2.4% in 2016
and 2.5% in 2017.
Apart from the economic update, the Chancellor did announce some measures that will affect businesses
and individuals. The following report summarises the announcements made by Chancellor George
Osborne during the 2015 Autumn Statement on Wednesday 25 November 2015.
Important information:
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may
be subject to change in the future. The information in this report is based upon our understanding of the Chancellor’s
2015 Autumn Statement, in respect of which speci"c implementation details may change when the "nal legislation and
supporting documentation are published.
This document is solely for information purposes and nothing in this document is intended to constitute advice or a
recommendation. You should not make any investment decisions based upon its content. ISA and pensions eligibility
depend on personal circumstances. The value of investments can fall as well as rise and you may not get back the full
amount you originally invested.
Whilst considerable care has been taken to ensure that the information contained within this document is accurate and
up-to-date, no warranty is given as to the accuracy or completeness of any information.
All tax tables include numbers, rates and allowances only. None of the usual qualifying notes are included in this report.
INTRODUCTION
1 // Autumn Statement Report 2015