Autumn Statement; Government Borrowing and Spending

The autumn statement outlined key measures on the government borrowing, infrastructure and housing. Some of them are outlined below.

Government Borrowing

Point at which debt predicted to begin falling delayed by a year to 2016/17. Deficit forecast to fall this year, as is cash borrowing. Deficit to fall from 7.9% to 6.9% of GDP this year and to continue falling to 1.6% by 2017/18. Borrowing forecast to fall from £108bn this year to £31bn in 2017/18 £33bn saving to be made on interest debt payment predicted two years ago. Deficit fallen by a quarter in last two years

Government Spending

Period of austerity to be extended by another year to 2017/18. Departments to reduce spending by 1% next year and 2% year after. Local government budgets to be cut by 2% in 2014. Government spending as share of GDP predicted to fall from 48% in 2009/10 to 39.5% in 2017/18. Spending review to take place in first half of next year

Read more

http://www.bbc.co.uk/news/uk-politics-20606382

Source;bbc.co.uk

If you want to find out more on how these changes will affect your business, contact KVS Accountants for advice,. KVS acts as tax advisors in Richmond, Chiswick, East Sheen, Knightsbridge, Kensington, Holland Park, Shepherds Bush and Clapham

 

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