2013 Autumn Statement

We’re all in this together… according to the Chancellor when he set out the painful measures he considered necessary to gain control of the country’s deficit back in 2010. it is a sign of how bad things have been that the 2013 Autumn Statement was the Chancellor’s most optimistic so far, and still admit that the ratio of national debt to national income will continue to rise for another two years, and the government will only return to surplus in 2018/19. Of course, that is a long the Chancellor must persuade the electorate in 2015 that he is the best person to still be in charge when that forecast is tested against the facts.

An even longer-term measure announced is a plan to raise the State pension age earlier than previously planned. For women, it is being brought up to equality with men – moving from 60 to 65 has already started. Then the 65 will become 66, 67 and 68. The Chancellor established a new principle: one-third of the average adult life should be spent in retirement, and the other two-thirds in work. With life expectancy increasing, the move to 66 will happen in 2020 and 67 in 2028; the Chancellor expects the age to rise to 68 in the mid-2030s and 69 in the late 2040s. People starting in the workforce now wil have longer to save for their retirement, and will have to worry more about the lifetime allowance for tax-favoured pension funds.

This Autumn Statement did not contain any big surprises, and that may be the best thing about it. But 116 pages of notes were supplied on the internet after Mr Osborne sat down; they contained many details that will make a difference to the tax liabilities and reporting responsibilities of individuals and some now, some in April 2014, and some a year later.

Further details will be announced next week and in March; this summary is based on what was released on 5 December.

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