黑洞社区

13.30 INITIAL SUMMARY

Osborne鈥檚 Autumn Statement contained very little news for the construction industry right up to the last minute - when he unveiled a major reform of Stamp Duty Land Tax. The ramifications of this change will be picked over in the hours to come, but in general it will be seen as a boost to housebuilders if Osborne is correct in his claim that 98% will pay less tax. The eye-watering 12% Stamp Duty tax on home sales above 拢1.5m pound may hit some luxury London developers, but it鈥檚 hard to imagine a strong backlash to this.

13.25

Britain is 鈥渙n course for prosperity鈥�. Osborne sits down.

13.20

鈥淢y final measure鈥�. Complete reform of Stamp Duty - this is big news. Distortions can be severe in current system. The burden have increased on lower and middle income families. 鈥淏adly designed tax on aspiration.鈥� Abolishing the 鈥渟lab 鈥渟ystem. 2% between 拢125k and 250k, 5% up to 拢950k, 10% up to 拢1.5m, and 12% over that.

Stamp duty will be cut for 98% of those that pay it. Average home in London big reduction.

Tax cut of 拢800m. Only homes above 拢937k see an increase in Stamp Duty. Become effective from midnight tonight. Those exchanged contracts will be able to choose whether to pay under new system or old.

鈥淚n stark contrast to shambles of anti-aspirational homes tax the party opposite wants to impose.鈥�

13.18

Plan to back businesses to employ more apprentices - jobs tax on employment of apprentices will be abolished altogether. 鈥淲hen people take a chance on young people we will back them, not tax them.鈥�

13.16

Osborne now on to pensions. Pretty meagre gruel for the construction industry in this statement so far.

13.14

Now the expected 鈥淣orthern Powerhouse鈥� section. 鈥淭oday confirm tender for new franchises for northern rail networks, to replace Pacer trains.鈥� Sovereign wealth fund for the North. New arts space to be built in Manchester. But no approval for HS3 funding. 鈥淣orthern Powerhouse at the heart of this statement,鈥� he says - but it feels like there鈥檚 very little of significance in this.

13.11

鈥淎 major investment in nation鈥檚 infrastructure,鈥� he says. More under this parliament as a share of GDP than under Labour. However, beyond expanding tax relief to flood defence projects, there seems to be nothing new in this section beyond the National INfrastructure Plan announced yesterday. 鈥淏ritain is raising its ambition,鈥� Osborne says.

13.07

Full review of the structure of business rates

13.06

Also made an announcement on Stamp Duty there - I think he said stamp duty on properties over 拢2m to be double the inflation rate.

Now makes a very childish quip about Miliband being a candidate to replace the voice for Wallace and Gromit. Not sure what relevance it has to the economy, but gets lots of cheers.

13.04

Going to consult on the operation of a number of tax structures - including umbrella companies - and whether they should be limited. These are used on a widespread basis in the construction sector, particularly since this year鈥檚 crackdown on so-called false self employment. It will be interesting to see what the reaction to this is.

13.00

25% tax on profits from multinationals who export profits to other countries outside of the UK. This will raise 拢1bn in the next five years. Banks also to contribute 拢4bn more in tax in next five years.

12.59

Commits to extend the 拢20m Cathedral Renovation Fund to extend repairs to churches across the country

12.58

Committs to delivering further 拢5bn next parliament from crackdowns on tax avoidance and evasion

12.56

Osborne announces 拢2bn extra each year for the NHS, as trailed at the weekend, and 拢1.2bn for GP services. 鈥淵ou cannot have a strong NHS without a strong economy.鈥�

12.55

鈥淲ill not hide from the house there will have to be further substantial cuts in public spending.鈥� 鈥淧eople are saying it will be impossible to produce these savings - this year we will spend 拢10bn less than set out in spending plans,鈥� he adds.

12.54

鈥淚 prefer lower tax receipts offset by lower interest payments鈥�

12.51

He admits tax receipts have not been rising as fast as predicted. Cuts to out of work benefits are saving 拢4bn, he says.

12.48

Borrowing falls every year - less than expected in the budget, however. Osborne clearly feels he has scored a major political point however because it hasn鈥檛 grown, as expected. Tory benches very pleased. Overall annual deficit is half what it was in 2010, though remember the continuing existence of any deficit means national debt is still rising.

12.47

Debt and deficit: The deficit is falling this year and will in every year. Final year borrowing will actually be lower than predicted in the budget. OBR has made revision to the way national accounts are created - but they are comparable to forecasts in the budget, he says.

12.46

OBR revising down inflation to 1.7% next year.

12.45

Earnings grew 4% in the last year for those in work. Wages to rise faster than inflation for the next five years.

12.44

1,000 new jobs created for every day govt in office, Osborne claims. Job growth fastest in Scotland and the North of England. 鈥淧rogressive politics in action.鈥�

12.43

Also revising up employment forecasts for this year - twofold, with half a million new jobs created

12.41

Revising up growth forecasts from 2.7% to 3% for this year. Growth seven times the rate of France. Next year it will fall to 2.4%, however. Manufacturing growing faster than any other sector - Osborne says this shows growth is more balanced.

12.40

Office of Budget Responsibility (OBR) revising down forecast for global growth. 鈥淏ritain can鈥檛 be immune to global economy鈥�

12.38

First mention of the 鈥渘orthern Powerhouse鈥� phrase - but he hasn鈥檛 yet revealed what he鈥檚 going to do about it. First the borrowing and growth figures. Osborne says recent revisions to GDP reveal the economy has never actually been in recession since 2010. Some in the construciton industry may beg to differ.

12.37

Osborne says the measures announced today will actually tighten the public finances. They will include a boost to infrastructure, he said.

12.35

Osborne rises. Four years ago presented the 鈥渁ccounts of an economy in crisis鈥�. Now fastest growing major economy in the world. 鈥淥ur long-term economic plan is working鈥�

12.30

Prime minister鈥檚 questions seem to be running over a bit - George Osborne is expected to rise for the Autumn Statement at any moment now.

12.21

In addition to further spending announcements, Osborne will also be updating parliament on the critical borrowing, spending and growth figures, and is thought likely to have to admit to having failed to meet deficit reduction targets because of lower than expected tax receipts. This will be important for the industry if it limits his hand in pledging further capital spending.

12.12

With the National Infrastructure Plan update published yesterday, much of the news that is of direct relevance to 黑洞社区 readers is already out in the public domain. The National Infrastructure Plan itself is available .

But it is likely there is still further news for the construction industry. Osborne made heavy hints in his October that he will unveil a series of measures to boost the economy of the North 鈥� to create what he called a 鈥淣orthern Powerhouse鈥�. Those in the construction industry are hoping these measures will include approval for a 拢7bn trans-pennine link, dubbed HS3.

In addition there has been much speculation about serious reform to Stamp Duty Land Tax, which could have serious implications for housing developers, particularly 鈥� if we believe the speculation 鈥� those developing more expensive homes.

12.00

Good afternoon, and welcome to today鈥檚 live coverage of chancellor George Osborne鈥檚 fifth Autumn Statement, his last before next year鈥檚 general election.

As usual there has been a huge flurry of activity and announcements in advance of today鈥檚 statement, which will begin at 12.30AM. My colleagues on 黑洞社区 have already provided extensive coverage which you can see here: