A quick recap….
- Main rate of National Insurance cut from 12% to 10% from 6 January, affecting 27 million people
- Abolishment of NI for self-employed people earning more than £12,570 from April, with 8% to be paid on profits between £12,570 and £50,270 – a 1% cut
- Legal minimum wage – known officially as the National Living Wage – to increase from £10.42 to £11.44 an hour from April
- Universal Credit and other working-age benefits to increase by 6.7% from April, in line with September’s inflation rate
- Work Capability Assessment to be reformed to reflect availability of home working
- Claimants who are deemed able to work but refuse to seek employment will lose access to their benefits and extras like free prescriptions
- State pension payments to increase by 8.5% from April, in line with average earnings
- “Full expensing” tax break – allowing companies to deduct spending on new machinery and equipment from profits – made permanent
- The 75% business rates discount for retail, hospitality and leisure firms extended for another year
- All alcohol duty frozen until 1 August next year
So will there be any effect on the current property market? In my opinion, very little, but we do have to remember that there are other key factors which look promising and may start to have a positive impact on the property market. Falling inflation means the government may look at holding interest rates a little longer, which could in turn see the lowering of mortgage rates for 2 and 5 year fixed deals. If the trend continues into the new year and if the reports are anything to go by from the big wigs in London, then the BOE could look at the spring market to start lowering the interest rates. This would mean further benefits to buyers due to lenders lowering their mortgage rates further.
So will the Autumn Statement play favourably for the consumer or are we seeing a Conservative Autumn Stalemate? As always time will tell…