Latest Public Sector News

05.12.12

Stagnated growth and extended austerity – Autumn Statement

Chancellor George Osborne’s Autumn Statement, due this afternoon, is expected to make it clear that austerity measures will continue for years, as he misses targets on reducing the national debt and deficit.

Britain will have had to borrow around £10bn more than expected this year, he will reveal, alongside independent figures on UK growth likely to show a stagnated economy.

Osborne is expected to say: “In this Autumn Statement, we show that this Coalition Government is confronting the country's problems, instead of ducking them.

“The public know that there are no miracle cures. Just the hard work of dealing with our deficit and ensuring Britain wins the global race.”

He is also expected to limit benefits rises in an attempt to break the link between benefits and inflation. A below inflation rate rise of 1% is expected.

The Conservatives have vetoed the Lib Dem push for a mansion tax or new council tax bands for the most expensive homes, while the Lib Dems are said to have vetoed a benefits freeze and a proposal to scrap housing benefit for the under-25s.

The Chancellor is likely to further reduce the tax-exempt amount that people can pay into their pension to either £40,000 or £30,000, to raise nearly £2bn. Alternatively, the level of pension tax relief high earners can claim could be cut.

Positive announcements should include cutting a 3p rise in petrol duty, due to come into force in the new year, and a windfall tax on banks could be extended. A new type of private finance initiative, PF2, will also be introduced.

The Government has already announced that £5bn will be raised from spending cuts across most Whitehall departments to fund schools, roads, science and infrastructure.

In terms of energy, Osborne will announce an expansion of the gas industry, and will approve up to 30 new power stations to produce 26 gigawatts of energy.

The Autumn Statement will be launched from 12.30 today.

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Utilising data to best deliver meaningful public services

14/11/2019Utilising data to best deliver meaningful public services

Public Sector Executive’s Matt Roberts explains how living in a modern, interconnected world, as we do, means public sector organisations cannot afford to ignore the rol... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >