Autumn Statement 2011 - briefing

On 29 November 2011 the Autumn Statement was delivered by the Chancellor, George Osborne. This provided an update on the state of the UK economy as well as his response to the economic forecasts by the Office for Budget Responsibility.

It builds on his previous announcements made in the March budget and the wider Spending Review (October 2010). Full details and further information on the Autumn Statement can be found on the Treasury's website.

The Chancellor announced the following:

• For both 2015/16 and 2016/17, Total Managed Expenditure (TME) will be reduced by 0.9% in each of the two years following the Spending Review period;
• Public sector pay awards will be set at 1% for the two years (2013-15) following the current pay freeze;
• The pension age will rise from 66 to 67 by 2026;
• Overseas aid to be limited to 0.7% of GDP;
• Working age benefits will be uprated in line with September’s CPI at 5.2%.
• An extra £1bn is being allocated to the Regional Growth fund in England with almost half a billion pounds will be invested in high-tech industries;
• £1.2 bn funding for school investment: half has been announced to support local authorities in addressing the pressure on school places with the remaining funding earmarked to support the creation of 100 free schools;
• More free childcare places for 2 year olds from disadvantaged families;
• Almost £1bn to tackle youth unemployment via the new Youth Contract;
• £40bn in credit easing to underwrite bank loans to small firms;
• £30bn to boost infrastructure development - although most of that money is planned to come from Pensions Funds rather than the Treasury;
• A raising of the bank levy to 0.088%;
• A restriction on rail fares will be capped at RPI plus 1% ;
• The planned 3p rise in fuel duty due in January 2012 has been deferred;