Chancellor of the Exchequer Philip Hammond delivered the annual Autumn Statement designed to deal with Brexit repercussions while announcing that in the future only a single major fiscal presentation will be delivered.
HM Treasury will move to a single fiscal event will be made after the spring Budget in 2017. There will be a second Budget before the end of 2017 to switch to the new timetable, which will then be followed in future years.
The Chancellor said the UK economy is forecast to be the fastest-growing major economy in 2016, but growth to is expected to slow and inflation to rise over the next two years. The UK economy has grown 14.3% in real terms since Q1 2010, second only to the US among major economies. UK GDP grew 2.2% in 2015, and growth has remained solid in the first three quarters of 2016. Business investment increased by 5.1% in 2015, but has been weaker in recent quarters, falling by 0.8% in the year to Q2 2016. Official data on business investment in Q3 2016 will be published on 25 November 2016.
Hammond said “Britain is open for business” while announcing new programs which were widely expected.
A major increase in R&D funding for universities and businesses was announced to help the UK remain an attractive place for businesses to invest in innovative research.
The corporate tax rate will fall further to 17% by 2020 – a rate that is expected to be the lowest in the G20.
HM Treasury will lead a review to identify barriers to access to long-term finance for growing firms, supported by an advisory panel led by Sir Damon Buffini. The British Business Bank will receive £400 million to help finance innovative UK firms.
HM Treasury will look to support UK Fintech growth and will provide £500,000 a year for Fintech specialists. The UK government has commissioned an annual ‘State of UK FinTech’ report on key metrics for investors. The government will also launch a network of regional FinTech envoys, and has agreed with the Joint Money Laundering Steering Group that they will.
The UK will also launch a network of regional Fintech envoys, and has agreed with the Joint Money Laundering Steering Group that they will modernize their guidance on electronic ID verification to support the use of technology to access financial services.
The Chancellor labeled the British economy strong and resilient. He stated;
“Our choice is to invest in our future.”
The Autumn statement and speech by the Chancellor is embedded on the Crowdfunder website below.