George Osborne's autumn statement

By LBV

05 Dec 2012

George Osborne received a cold reception when he stood to deliver his autumn statement and was so loudly jeered that speaker John Bercow had to interject after just one minute to quieten the rowdy MPs.

However, the announcement that government borrowing and the deficit are declining, as well as the introduction of new investment plans and reduced tax liabilities seemed to score more favourably.

Corporation tax
Corporation tax is to be reduced from 22% to 21%, which compares to 40% in the USA and 29% in Germany. George Osborne said: “The message is that businesses should come here, invest here and create jobs here. Britain is open for business.”

Annual investment allowance
There is to be a tenfold increase in the annual investment allowance for plant and machinery, from £25,000 to £250,000. George Osborne said: “This will cover 99% of all investment by businesses and is a huge boost to those who want to create jobs.” He also highlighted the hard work done in Burnley and Pendle in bringing this amendment to fruition.

Export finance
The funding for UK Trade and Investment is to increase by more than 25% a year, aimed at helping British firms compete overseas and to paint the country as a destination for foreign investment. A new £1.5bn export finance facility is also to be launched which will support the purchase of British exports.

Shale gas
There was no large announcement on shale gas, which is likely to be farmed in part off the coast of Blackpool. George Osborne instead said that: “We are consulting on new tax incentives for shale gas and announcing the creation of a single Office for Unconventional Gas so that regulation is safe but simple.”

Petrol tax increase cancelled
The 3p-per-litre tax increase had been scheduled for January, while many believed that it would be postponed until April. However, the increase has been cancelled altogether.

Rail network
High Speed 2, the rail network which is to run between London and Manchester in around 20 years’ time, will be explored further in the New Year by the transport secretary. Meanwhile, there has been a cap on rail fare rises for the next two years.

Tax thresholds
The income at which people start paying the 40% rate will increase by 1% year on year, from its current £41,450 to £42,285 in two years’ time. The personal tax allowance will increase from £9,205 to £9,440 next year. The tax-free allowance on pensions has reduced from £50,000 per year to £40,000 per year, meaning saving for retirement will become more expensive for around 1% of the population, whilst the overall ISA limit will increase to £11,520 in April.

Tax avoidance
The Treasury is to tackle ‘aggressive’ tax avoidance with the introduction of anti-abuse rules and the closure of tax loopholes. This is expected to result in an extra £7bn in revenue for the government, whilst bringing money home from unreported Swiss bank accounts is expected to generate £5bn over the next six years.
 

Enjoyed this? Read more from LBV

Latest news

1

Breck to start £15m Blackpool affordable homes and retail development Cropper Road, Blackpool

Breck to start £15m Blackpool affordable homes and retail development

14 Oct 2025

2

New help for Blackpool businesses to access growth money John Fallon speaking at the meeting

New help for Blackpool businesses to access growth money

14 Oct 2025

3

Fuuse raises further £6m as it heads to profitability COO Nik Southworth, CEO Michael Gibson, CFO Sonia Davies.

Fuuse raises further £6m as it heads to profitability

13 Oct 2025

4

Preferred developer named for strategic site Barnfield named as preferred developer for site

Preferred developer named for strategic site

13 Oct 2025

5

Warden completes hospital improvement work Warden Hospital

Warden completes hospital improvement work

13 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin