You are here: Home - Investing - Experienced Investor - News -

What should investors make of the Autumn Statement?

Written by: Richard Stone
The Autumn Statement was a highly political affair with a U-turn on tax credit changes and the police budget being protected as compared to the potential cuts trailed in advance.

The Chancellor was able to score these political points as a result of the strength of the UK economy. His borrowing forecasts have been boosted by an increase in the projected rate of growth in 2016, lower inflation (resulting in savings on inflation-linked spending) and interest rates expected to stay lower for longer, which reduces the burden of debt interest. In addition the Chancellor will raise revenues from the levy on large employers for apprenticeships, and a higher rate of stamp duty on second homes and buy to let properties.

For investors there was an absence of any new announcements, with no further update on the consultation on pensions and the tax treatment of contributions and withdrawals. The Government will respond to that consultation in the 2016 Budget. Following the large increase in the ISA allowance last year and low inflation, it is unsurprising that the allowances will be held flat in 2016/17.

However if investors are looking for investment ideas, the businesses likely to be winners as a result of the Autumn Statement will be housebuilders, those serving the energy sector, those serving the health sector and those providing education services – all will be boosted by the measures announced today.

In summary, investors in UK plc should be cheered by the stronger performance of the UK economy, with a recent ONS report suggesting 30% of the share capital of AIM quoted businesses which are predominantly UK based are owned by UK personal investors. If looking for specific investment ideas they should focus on those sectors where the Government will be seeking to boost growth by increasing spending.

Richard Stone is chief executive of The Share Centre

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Flat-rate state pension set at £155 a week

The flat rate state pension will be £155.65 per week from April 2016, the Chancellor has confirmed.