What Does the Autumn Statement Mean for Me?

The publication date for the Autumn Statement 2023 has been announced by the Chancellor of the Exchequer, Jeremy Hunt, as 22 November. The Office for Budget Responsibility (OBR) has been tasked with producing an economic and fiscal forecast to be presented to Parliament alongside the Autumn Statement.

With the statement due to be published next week, we need to understand what it means to understand better and make sense of it.

What is the Autumn Statement?

The Autumn Statement is part of the forecasts that are called the Economic and Fiscal Outlook (EFO) with the Budget (Financial) Statement. You can read more about this year’s Budget here. Before 2010, the Treasury was responsible for producing these forecasts. From that year, however, the independent OBR took over.

The Autumn Statement provides an update on the government’s economic plans based on the latest OBR spending, tax, and economic forecasts. It allows the government to announce changes to its fiscal policy and spending priorities.

Why is it important to me as an individual?

The Autumn Statement may not be something you look forward to every year, but it is essential for your personal finances and well-being. This annual financial announcement by the government provides key insights into the nation's economic health and sets the stage for changes that can directly affect your life.

• Provides valuable insights into the state of the national economy. It provides a snapshot of whether the economy is thriving, facing challenges or treading water. The wider economic context can affect job opportunities, wage growth and overall financial stability in your life.
• Show you the changes in tax rates and allowances. These adjustments can directly impact your finances, from income tax to capital gains tax and inheritance tax. Keeping abreast of these changes is essential for effective financial planning.
• Allocates funds for essential public services such as health, education and infrastructure. Fluctuations in government spending can affect the quality and availability of these services, affecting your well-being and overall quality of life.
• Announcements of changes to welfare benefits, pensions and financial assistance programmes can affect your eligibility and the government's support level.
• Shapes business taxes, incentives and government support for business. These factors influence job creation, business investment and economic growth, directly affecting your job security and earning potential.
• Influences your purchasing power and the affordability of daily necessities by showing whether the government is taking steps to control inflation and stabilise the cost of living.
• Policies relating to savings and investment, such as changes to ISA (Individual Savings Account) limits or investment incentives, can affect your ability to build wealth and plan for the future.
• Government housing policies can affect property prices, mortgage rates and access to affordable housing. These factors have a direct impact on your housing situation and financial stability.
• Promotes environmental sustainability by offering incentives for green energy or climate change initiatives. These policies affect your living environment and potentially your energy costs.
• Provides you with valuable information to make informed financial decisions. It's an opportunity to assess how government policies affect your income, expenditure and financial goals so that you can adjust your financial plan accordingly.

It is not just another government announcement

The Autumn Statement directly and indirectly impacts many aspects of your financial and economic well-being. Staying informed and engaged with the government's fiscal policies and decisions is crucial to navigating the changing financial landscape and securing your financial future. So when the Autumn Statement rolls around, pay attention - it's about your money and your life.