How could the Spending Review affect you?

budget-family-350The Chancellor today (25 Nov) announced his Autumn Statement and Spending Review, and many of us are likely to be affected in different ways, from tax to benefits, from housing to local amenities.

Some of the headlines are:

Tax Credits/Welfare –  The planned £4.4bn cuts to working tax credits as part of plans to reduce the welfare bill by £12billion, has now been abandoned and tax credits will now remain unchanged.

The Chancellor said the £12bn of welfare savings will be “delivered in a way that helps families as we make the progression to a national living wage

The Chancellor also says that “more than a million” more jobs will be created over the next five years.

Council Tax – It’s been confirmed that local councils have the freedom to increase council tax bills by more than 2 per cent, to help pay for social care funding.

Childcare – 30 hours free childcare for 3 and 4-year-olds from 2017, to parents working more than 16 hours and earning less than £100,000.

Pensions – The basic state pension will increase by £3.35 a week next year, taking the weekly ‘single tier’ total up to £155.65 for new pensioners.

Housing –  £2bn has been set aside for more than 400,000 “affordable homes” to be built in England, to buy and to rent. Stamp duty for Buy To Let homes will be 3% higher than for regular stamp duty.

Right-to-buy is being extended to housing association tenants starting with a new pilot in five housing associations from midnight.

Help To Buy will be a shared ownership venture aimed at allowing people to get equity loans to help buy a home. London Help to Buy gives a 40% interest-free loan to first-time buyers.

Find out more about the Help to Buy ISA here

Arts & sport: Arts Council funding will be increased so as to keep free museum entry. UK sport budget will increase by 29% “so we go for gold in Rio and in Tokyo”.

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