The chancellor, Philip Hammond, has delivered his first – and last – autumn statement. He promised to “build an economy that works for everyone”, but what do the measures he announced mean for your finances?
If you are a pensioner
You might be worried about the future of the “triple lock”, which was introduced in 2010 and has seen pensioners receive inflation-busting rises on their income. It means the basic state pension increases by either inflation, growth in average weekly earnings or 2.5%, whichever is highest. The chancellor said that “we will meet our pledge to our country’s pensioners through the triple lock”, but added: “As we look ahead to the next parliament, we will need to ensure we tackle the challenges of rising longevity and fiscal sustainability.” Which sounds like it might be scrapped after that.
If you are a first-time buyer
There were no changes that would make a difference to the costs associated with buying a property, but those living in rented property while they wait to buy will benefit from a ban on letting agents’ fees if it is introduced as planned. The government will consult on it first.
If you are a letting agent
The chancellor confirmed that he will be looking to ban fees that agents charge tenants. Estate agency shares fell after the announcement, suggesting that this will mean lower profits for some firms.
If you are a saver
A new three-year National Savings & Investments bond will be available from spring 2017. The rate is expected to be around 2.2% – better than the top rate currently available on a three-year savings bond, which is 1.63% from Ikano Bank. The bond will allow people to save between £100 and £3,000, and be available to those aged 16 or over. Someone investing the full £3,000 could earn just over £200 in interest after three years. The autumn statement documents confirm the amount you can save in an Isa will rise to £20,000 from April 2017.
If you are on a low income
The national living wage – George Osborne’s rebranding of the minimum wage for over-25s – is set to rise by 30p an hour to £7.50 from April 2017, benefiting more than a million workers. Younger workers will get smaller increases.
The personal allowance – the sum you can earn each year before paying tax – will increase as planned to £11,500 from April 2017.
If you use salary sacrifice schemes
Schemes that allow you to cut your tax bill by signing up to gym membership through your employer, or other benefits such as health checks, will disappear – from April 2017 there will be no benefit to these salary sacrifice schemes. The chancellor will still allow tax-efficient arrangements for pensions, childcare, Cycle to Work and ultra-low emission cars. Anything already in place before April will be protected until April 2018, and arrangements for cars, accommodation and school fees will be protected until April 2021.
Deloitte says that a basic rate taxpayer sacrificing £30 a month to use their workplace gym will pay an extra £72 a year in tax, while their employer will pay an extra £50 a year in national insurance.
If you are a driver
Fuel duty was frozen again. However, the increase in insurance premium tax from 10% to 12% in June 2017 will add to the cost of buying car insurance. The AA says the average policy will cost £10.70 a year more after the change.
If you live in social housing
Hammond said that a trial scheme of offering right to buy to housing association tenants would be extended, but to a regional pilot, not right across the country. More than 3,000 tenants will be offered the chance to buy their homes.
