In his Autumn Statement 2016 the chancellor announced a number of non-tax measures intended to boost productivity and strengthen the economy. We pick out a selection of the main ones.
New investment fund to boost productivity
- A new National Productivity Investment Fund (NPIF) will provide £23bn for high value investment between 2017/18 and 2021/22.
- Priorities will be housing, R&D, transport and telecoms.
Funds for start-ups
- The Government will invest £400m in VC funds via the British Business Bank to help growing firms.
- Aim is to prevent so many start-up technology firms being snapped up by bigger companies.
More support for exporters
Additional support to be provided to exporters through UK Export Finance by:
- Doubling its total risk appetite to £5bn.
- Increasing the number of pre-approved local currencies in which it can offer support.
Investment in digital infrastructure
- £1bn investment by 2020-21 to bring more full fibre broadband and trial 5G technologies.
- Main cities likely to benefit first.
- New 100% business rates relief for 5 years on new fibre infrastructure.
Investment in transport infrastructure
- £1.1bn by 2020/21 from the NPIF to relieve congestion and upgrade local roads and public transport. £220m for strategic roads.
- £530m for rail infrastructure to increase capacity and smart ticketing.
- A new Oxford and Cambridge Expressway: a rail corridor which will also include Milton Keynes.
Business rates reliefs
- Rural rates relief to double to 100% from 1 April 2017.
- New 100% business rates relief for 5 years on new fibre infrastructure.
Increased funds and powers to cities, regions and nations
- £1.8bn to go to Local Enterprise Partnerships around the UK to improve transport, house building, skills and digital connectivity.
- Continuing devolution of powers in English regions
- More city deals for Scotland and Wales.
National Living Wage and National Minimum Wage to increase
- The National Living Wage will increase from £7.20 to £7.50 from April 2017.
- National Minimum Wage rates will also increase for apprentices and the under 25s.
- See National living wage rates / National minimum wage rates
