How the autumn statement can affect your personal finances

Synonymous with the sound of crunching leaves and scent of smoke, autumn is a time when personally life becomes a little more settled and quiet. However, the financial sector is awash with changes like the turning of the leaves. With the Chancellor’s autumn statement around the corner, we investigate how personal finances will be affected.

What is the autumn statement?

Every year, the Chancellor of the Exchequer (currently Phillip Hammond) gives a speech in the House of Commons in November. This is an update on the state of the economy and a brief plan for government spending in the coming year.

When is it?

Every year, the Autumn Statement is given in November, after the third quarter’s figures have been released. This year it will be at 12.30pm on Wednesday 23 November 2016. A Chancellor can hold a spending review at any time of the year and they are sometimes implemented as an emergency if there is anything large happening. However, the budget is delivered in the summertime and Hammond didn’t deem it necessary to have one immediately after Brexit.

What will the autumn statement contain?

As well as covering how the government responds to the changes Brexit has incurred, the Chancellor will introduce the plans for spending on infrastructure and the notion that pension reforms have been scrapped. It’s also been indicated that there will be a better system in place to advise on pensions. We expect plans for building more houses and there have been axes to the preliminary idea of paying back the national debt. Following Osborne’s promise to have done this by 2020, Hammond does not want to make bold claims he can’t follow through on.

How is personal finance affected by the autumn statement?

With the expected fallout of the Brexit vote, there may be cuts in public spending, which could result in further cuts. shutterstock_222072319This means benefits such as tax credits could undergo further reductions. The knock-on effect on your own personal finances means they are likely to take a bit of a battering too. Our advice is to aim for saving as best you can in the coming months, whilst the economy wavers. With Christmas around the corner you may consider a Guarantor Loan from a reputable company such as Trust Two.