George Osborne's Autumn Statement announcements
By Tim Montgomerie
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The Office of Budget Responsibility predicts slower growth in Britain but no recession - so long as €urozone sorts out its problems. Big assumption. John Redwood pointed out earlier that OBR has got all of its previous forecasts wrong.
HM Treasury tweets: "Because of lower market interest rates, debt interest payments over the Parliament will be £22 billion less than predicted" ...but borrowing overall will be higher.
Spectator graph of how borrowing projections have altered since March:
Osborne says higher interest rates that would follow higher borrowing would dwarf any benefits from that borrowing.
Most encouraging announcement so far from Osborne is a consultation on localising public sector pay. Unions will resist this with every fibre in their bodies.
Tax credits frozen for many.
Rise in retirement age to 67 brought forward to 2026.
Bank levy up to 0.088% to ensure it raises £2.5 billion.
£525 million shaved off development spending because, says the Chancellor, Britain was on course to overshoot 0.7% goal.
Strong attack on the financial transaction tax: It is not a tax on banks it is a tax on pensions, says Osborne.
Credit easing will underwrite £40 billion of bank loans to reduce the average interest rate charged to small businesses by 1% to 4.5%. Fraser Nelson tweets: "I wish I could applaud this 'credit easing' - but it just sounds like a recipe for sub-prime companies. Seen this movie, know how it ends..."
Lots of infrastructure funding for 500 projects over next decade paid for by pension funds (£20 billion) - "British savings for British jobs" says the Chancellor - and tighter squeeze of current spending (£5 billion). Promises superfast broadband for 90% of Britain. See map of key projects.
Announces £250 million emergency help for energy intensive industries that are being damaged by the government's climate change policies.
Business rate relief holiday extended until April 2013.
The Chancellor finds £1.2 billion from infrastructure spending for schools including £600 million for 100 new free schools, including elite maths colleges for 16 to 18 year-olds.
Cancels 2p of 5p increase in fuel duty and also, as expected, limits increase in rail prices to RPI + 1%.
The number of children receiving free nursery care will be doubled.
George Osborne sits down at 1.18pm, with promise not to be a "quack doctor selling miracle cures"... and then Ed Balls gets to his feet.
> Full autumn statement on the Treasury website.
> WATCH:
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