George Osborne will take to the Dispatch Box at 12:30pm today to deliver this year’s Autumn Statement — a mini-budget on the Treasury’s latest plans for spending and taxation. The Chancellor will also announce the results of the Spending Review, which will outline the cuts to departmental expenditure required to clear the deficit before 2020. Here’s what we already know about the Chancellor’s big announcements today.
‘The biggest housebuilding programme since the 1970s’: Today’s FT reports that housing will be a key component of the Autumn Statement, with the Chancellor promising to build 400,000 new homes in England and shifting public subsidies from renting to buying. After the debacle over cutting tax credits, Osborne will be hoping the £6.9 billion programme will convince voters the Tories are still on the side of hardworking people.
Lots of cuts: The Spending Review portion will likely garner most the attention today. With Health, Defence, Foreign Aid and Education spending already ring-fenced, other departments such as the Home Office, Justice, Local Government and Work and Pensions are expected to take the brunt of Osborne’s axe, with big cuts expected to their budgets. Any of the rumoured cuts to policing in particular will be seized upon by Labour as a threat to Britain’s national security.
Tax credits cuts: Osborne will announce some sort of measure for tempering the cuts to tax credits after his humiliating defeat in the House of Lords. Briefings to newspapers suggest the cuts may be phased in over the next two years, until the National Living Wage has reached £9 an hour. There are also reports that the Treasury will raid the welfare budget — housing in particular — to find the extra cash needed to help affected by the cuts.
Shared ownership: Osborne is also likely to lighten some of the restrictions on shared ownership of properties, as part of his main housing announcement. The Times reports that the maximum salary threshold will be raised to £80,000 across the England and £90,000 in London.
Railways: The FT also reports that £300 million is likely to be set aside for Crossrail 2 in London (the long-discussed Hackney-Chelsea line) and a high speed railway between Manchester and Leeds — sometimes referred to as HS3. £20 million is also reported to be earmarked for a new ‘Transport for the North’ body (expect to see numerous references to the Northern Powerhouse today). Osborne may also announce a feasibility study into a nationwide Oyster card scheme, for simplifying train tickets.
Northern Powerhouse Investment fund: A new £250 million fund for investing in business in the north is also expected to be announced. The funds will come from Whitehall and the European Union.
Interest rate rise: The Times reports that Mark Carney is considering making it more expensive for banks to offer certain types of loans — citing a rapid rise in personal lending — which in turn might lead to a rise in interest rates. Although this would not be announced in the Autumn Statement, there may be hints in the overall statistics on the health of the economy.
One more thing: George Osborne usually has a surprise or two up his sleeve so watch out for something else today that hasn’t been briefed out to the press.
Join The Spectator’s Andrew Neil, Fraser Nelson and James Forsyth on 26 November to discuss George Osborne’s Autumn Statement and any surprises the Chancellor might have in store. Click here for more information and to book tickets.
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