Anything for savers in the Autumn Statement?

Enables’ experienced IFA’s in Bishop’s Stortford know that savers have been having a tough time and things do not look as if they are going to change radically but The new Chancellor of the Exchequer, Philip Hammond, in his first Autumn statement seemed to be acknowledging this.

For savers the Autumn Statement confirmed, as had already been announced, that the annual Isa allowance will rise to £20,000 in April next year. In addition a new savings bond launched by the Government will allow anyone over the age of 16 will be able to deposit between £100 and £3,000 in it. The bond will be open for a year and savers are expected to receive interest of 2.2pc on up to £3,000. The "Investment Guaranteed Growth Bond", launched through National Savings & Investments, will offer a "market-leading" rate, said the Chancellor. Details will be announced when the bond is launched in the spring, but the Government expects it to offer that interest rate for a term of three years.

For savers using 'drawdown' pensions however there is some less welcome news, the annual allowance for saving into a pension for those who have started to "draw down" their pension savings will be cut to £4,000 from £10,000.  The official documents said: "The Government does not consider that earners aged 55 and over should be able to enjoy double pension tax relief, such as relief on recycled pension savings, but does wish to offer scope for those who have needed to access their savings to subsequently rebuild them. The Government will consult on the detail."

http://www.telegraph.co.uk/tax/news/autumn-statement-2016-will-better-worse/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

UK borrowing overshoots target

The Chancellor’s deficit reduction policy has again come under pressure with news that the budget deficit for the financial year to March stood at £74bn, £17.7bn less than the previous year, but £1.8bn more than the Office for Budget Responsibility’s (OBR) forecast of £72.2bn for 2015- 16. However, commentators believe that in macro-economic terms this is a fairly modest overshoot and means that the OBR forecast could yet be vindicated.

George Osborne had pledged to return the UK economy to surplus by 2020, with the OBR forecast stating that the UK could be running a budget surplus of £10.4bn in 2019-20 and £11bn the following year. However, the Chancellor has since revised down his forecasts in a move designed to shrink the deficit more slowly, and reduce the need to introduce yet more austerity measures. In the most recent forecast, the OBR expects the deficit to be £55.5bn in 2016-17, £38.8bn in 2017-18, falling to £21.4bn in 2018-19.

Reporting on income and expenditure, the ONS said that the government received £636.2bn in income for the financial year to March, an increase of 4% on 2015. Over the same period the government spent £696.2bn, roughly in line with the previous year. Two thirds of this figure goes to central government departments, the remaining third is accounted for by expenditure on social benefits including pensions, unemployment benefit, child benefit and maternity pay, together with capital investment and the interest payments due on the government’s outstanding debt.

With weaker than expected growth from tax receipts contributing to the borrowing target overshoot, HMRC has announced that it has plans to pursue tax avoiders more assiduously in the coming year. It remains to be seen if these measures, together with the planned savings to the welfare budget, will enable the Chancellor to meet this year’s target.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE