Can Redbridge residents expect a little more in their pockets after Autumn Statement?
PUBLISHED: 15:05 23 November 2016 | UPDATED: 10:11 24 November 2016
A rise in the living wage and increase in income tax threshold was announced in the chancellor’s Autumn Statement today.
By raising the income tax threshold from £11,000 to £11,500 in April, people might expect a little bit more in their pockets.
The threshold is set to rise further to £12.500 by 2020-21 and then increase in line with inflation.
In April, low wage workers can expect the national living wage to rise from £7.20 an hour to £7.50.
The higher rate tax threshold will rise to £50,000 by the end of the parliament.
“I wouldn’t call it a bold budget and I cannot see how it’s going to make a significant and positive affect on happens locally,” said Redbridge Chamber of Commerce chairman, Geoff Hill.
“If people get more in their pocket but have to spend more it doesn’t increase growth.
“We want to see wages go up and we want to see people better off but unless wage rises and tax allowances keep pace with inflation it isn’t going to make a lot of difference.”
In preparing the UK for Brexit, Mr Hammond vowed to make the UK economy “resilient”.
Despite forecasting the UK to be the fastest growing major economy in 2016, the Office for Budget Responsibility has forecast growth to slow and inflation to rise over the next two years.
In the period until 2012, predictions show borrowing will be £122billion higher than forecast in March’s budget.
Public spending is to be 40 per cent of gross domestic product (GDP) - down from 45pc in 2010.
“We need stimulus to make it work,” continued Mr Hill.
“We need some kind of reassurance that will enable us to trade profitably with other countries and build and attract foreign investment.
“Cutting public spending is ok for the deficit but we need to stimulate with some public spending so the industry keeps going.
“One of the big problems with this country is that industry has been allowed to crumble.”
If you value what this story gives you, please consider supporting the Ilford Recorder. Click the link in the orange box above for details.