Autumn Statement 2016 – Budgetary measures with mass appeal

All Chancellors whilst trying to balance the books must surely have one eye on measures that are likely to be universally popular.  On this occasion, Mr Hammond was keen to remind us of some of his predecessor’s promises that are likely to bring a warm glow to all of us.

Personal allowances

The personal allowance will rise to £11,500 in April 2017, and the Chancellor reiterated the government’s promise to raise it to £12,500 before the end of this Parliament (2020/21). After that he announced that it would rise in line with inflation.  He also reiterated the promise to raise the higher rate threshold to £50,000 within the lifetime of the Parliament.

Fuel duty

The annual rise in fuel duty has been cancelled again, which the Chancellor says will save the average car driver £130 a year, and the average van driver £350 per year.

Childcare

After a long delay, the promised tax-free childcare is now promised to commence in early 2017. This scheme involves an individual paying money into a childcare account, which will be topped up by HMRC at a rate of £2 for every £8 paid in. The maximum saving will be £2,000 per child per annum.