There were plenty of talking points (beyond Ed Balls’s rather muddled response and Nick Clegg shaking his head when Osborne categorically ruled out a ‘mansion tax’).
Here are six of the biggest…
1 Economy
The economic growth forecast for this year has been cut to -0.1%, which, you guessed it, is down on the estimate given during the March Budget (growth of 0.8%). Beyond this year, the forecasts read: 1.2% in 2013, 2% in 2014, then 2.3%, 2.7% and 2.8%.
Of course, none of this prevented Osborne from trying the ol’ lipstick-on-a-pig trick: his first words this afternoon were “It’s taking time but the economy is healing.”
2 Pensions tax relief
The gloomy economic picture was expected to be the biggest news to come out of today’s Autumn Statement, but there was another biggie: from 2014/15, the lifetime pension relief allowance will fall from £1.5m to £1.25m.
Additionally, the annual allowance is to be cut by a further £10,000 to £40,000. This comes only two years after Osborne slashed the allowance from £255,000 to £50,000.
The BBC’s Robert Peston said the restrictions represent a £1bn tax increase for high earners.
3 Income tax
Good news: from next year, the basic income tax threshold is to be raised by £235 more than previously announced – to £9,440. Meanwhile, the threshold for the 40% tax rate is to rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285.
4 Drawdown
The maximum income limit for capped drawdown is to be pushed back up to 120%. Though we don’t know yet when this will happen. The limit was cut from 120% to 100% 18 months ago at the same time as the rules were altered to allow people to remain in drawdown beyond age 75.
5 IHT
The inheritance tax (IHT) threshold is to be increased by 1% next year, to £329,000.
6 ISAs
The contribution limit for individual savings accounts will, from next April, be raised to £11,520 (previously set to be £11,280). Osborne also said the government is consulting over allowing direct investment in Alternative Investment Market shares within ISAs, to boost enterprise.
7 State pension
The basic state pension will rise by 2.5% next year to £110.15 a week.
…and here are two other notable changes…
1 Fuel
The 3p-a-litre increase in fuel duty, which was due to come in next January, has been cancelled.
2 Tax avoidance
Osborne said the Treasury expected to bring in some £5bn over the next six years thanks to a treaty with Switzerland to deal with undisclosed bank accounts.
