The UK economy is "resilient" despite forecasts that government finances will be £122bn worse off than previously expected by 2020.
Mr Hammond told MPs the UK’s deficit would no longer be cleared by 2020 – with the target instead "as early as possible" afterwards and growth predictions had been cut as a result of the Brexit vote.
As widely expected, he unveiled a fuel duty freeze and more cash for housing, transport and digital infrastructure.
Mr Hammond reflected "times have moved on", the Chancellor told the Commons the economy needed to be "match fit" for the challenges ahead and announced a £23bn Productivity Investment Fund to boost lacklustre output and a £2.3bn pot to to help free up land to provide an extra 100,000 affordable houses a year.
AUTUMN STATEMENT 2016 – Key Points
- From 23 November 2016 to 31 March/5 April 2019, businesses will be entitled to a 100% First Year Allowance for the cost of installing electric charge-point equipment for electric vehicles.
- From 1 December 2016, income tax and CGT advantages of new shares issued in return for “employee shareholder status” will be withdrawn (shares already held not affected).
From April 2017
- A rise in the minimum wage from £7.20 to £7.50
- A new savings bond paying 2.2% interest
- A £260m-a-year crackdown on employee perks
- A £50-a-year rise in insurance tax
- Controversial right-to-buy scheme for housing association tenants to be piloted
- New ‘National Productivity Investment Fund’ of £23bn
- No further welfare cuts – but no help for ESA cut victims
- Personal income tax allowance to rise to £11,500 next year
- Corporation tax to drop to 17% – the lowest in the G20
- Fuel duty frozen for 7th year in a row
- Insurance Premium Tax rises from 10% to 12% from 1 June 2017
- ISA investment limit rises from £15,240 to £20,000 per year
- Rural rate relief doubles to 100% to match small business rate relief
- National Insurance thresholds for employers and employees to be made consistent at £157 per week
From April 2018
- Class 2 National Insurance Contributions abolished; self-employed retain contributory entitlements through Class 4 NIC on profits or voluntary Class 3 contributions.
- “Making Tax Digital” reforms apply to income tax, according to present Government plans; responses to consultations on the proposals to be published in January 2017.
To be announced
New measures to counter “disguised remuneration” schemes used by self-employed people and employers.