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Osborne Pledges More An 'Autumn Restatement'

Written By Unknown on Rabu, 03 Desember 2014 | 15.00

So far it has been more of the Autumn Restatement than anything else - with the big headline numbers on road building and flood defences already known.

A third of the extra £2bn for the NHS already exists. Even the headline measures of what the tabloids will call a "White Van Man" Budget, on fuel duty and air passenger duty for children, are small fry.

Approving the principle of devolving corporation tax to Northern Ireland is a significant step in the context of the Democratic Unionist Party's possible parliamentary bargaining power.

The Scottish government too has shown its concerns.

And watch out for the impact of the Welfare Cap.

A series of fascinating discussions have gone on between the Office for Budget Responsibility (OBR) and the Department for Work and Pensions.

Essentially the OBR will judge whether capped welfare (excluding pensions) can be kept under £119.5bn next year.

The big picture will be a fiscal announcement with no net giveaways - basically fiscally neutral - but perhaps even a small symbolic takeaway.

That is because, as we know, the cupboard remains bare even after four years of deficit reduction.

So the main story will be the big macroeconomic numbers. There will be a lot to boast about.

From the best growth figures in the G7 to the extraordinary jobs numbers. But given that, the deficit numbers and poor tax receipts cancelled any hope for proper pre-election goodies.

Nigel Lawson's pre-election income tax cut of 2p in the pound was never going to be repeated, except as a vague conditional Conservative Conference aspiration.

For there is a nagging doubt at the heart of the Conservatives. After a year of recovery and a rapid rise in the feel good factor (measured by consumer confidence) and rises in house prices, Conservative poll ratings have remained stubbornly anchored in the low 30s. The feel good factor is missing in action.

That rise in consumer confidence flattened out in the summer, and is now dipping slightly. Black clouds are emerging from the continent.

More than that, the Miliband economic narrative on "cost of living crisis" remains strong, even if not all those who believe it will vote Labour.

Economic pessimists are fuelling UKIP's surge up the polls.

The sight of the Chancellor and Prime Minister apparently crowing about macroeconomic success has not been a vote winner in these circumstances.

It did not work in a thoroughly normal constituency such as Rochester and Strood.

So yes, the aim of this Autumn Statement will be to get the argument away from Europe and immigration and on to the economy.

But Mr Osborne will also try to modulate the boasts. The argument to be made will be a relative one.

People might not feel it everywhere, but a corner has been turned, and if they don't feel good, at least they might feel less bad than they would under "an untested Opposition with no economic plan".

That is more "feel better" than necessarily "feel good".


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Osborne 'To Stay On Course To Prosperity'

By Darren McCaffrey, Sky Political Reporter

Around a billion pounds of investment for small and medium sized businesses, relief on petrol prices and changes to business rates to help the High Street are just some of the Autumn Statement measures to be announced later.

Plans to make stamp duty more progressive, easing the bill for people buying at the bottom end of the market but with possible heavier charges on more expensive homes, could also be unveiled by George Osborne later in what has been described as the "Government's last big economic event".

The Chancellor will say: "Our long-term economic plan is working. I say: we stay the course. We stay the course to prosperity.

"We support people who want to work hard and get on. And it is for their sakes that we resolve to stay on course to prosperity."

The Treasury and the Bank of England have agreed to extend the Funding For Lending (FLS) scheme by another year to January 2016 - underwriting loans specifically for smaller firms.

Mr Osborne is also allocating an extra £400m to expand the state-owned British Business Bank's venture capital programme.

And it will be handed funding to guarantee up to £500m of new lending in 2015-16.

The Chancellor is also expected to scrap the Fair Fuel Stabiliser, which would have seen petrol prices increase by 1p next March.

Air Passenger Duty on children's flights is also due to be abolished, which could reduce the cost of long haul flights by hundreds of pounds for families.

And there could be help for the High Street, with a review of business rates and how it is calculated due to be completed by early 2016. Rising rates have in part been blamed for hitting traditional town centre shops.

The Chancellor is expected to have to acknowledge that net borrowing will miss targets and reach about £90bn – greater than the £86.5bn predicted in March during the budget.

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  1. Gallery: See How The UK's Economy Is Doing

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Flooding Fund: £2.3bn To Protect 300,000 Homes

Written By Unknown on Selasa, 02 Desember 2014 | 15.00

Flooding Fund: £2.3bn To Protect 300,000 Homes

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More than 1,400 projects will receive a share of £2.3bn to protect against flooding for 300,000 homes.

But environmental group Friends of the Earth has suggested that figure is not high enough and there is still a £500m shortfall in the flood defences budget in the next parliament.

The spending includes major investment in areas including the Humber Estuary, with £80m set to be spent, and £196m for the Thames Estuary.

Ministers will also commit to spending £15.5m on flood defences in Somerset in the next six years - including £4.2m on the Somerset Levels which were hit badly by flooding last winter.

The Government has come under fire over funding for flood defences.

Danny Alexander MP, Chief Secretary to the Treasury, said: "We all saw the destruction and heartache caused by flooding last year and that is why this investment is vital to build up Britain's defences for the future.

"The projects we are announcing today will protect some of the country's most at risk locations ensuring that we will be as prepared as possible for future severe weather."

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  1. Gallery: Somerset Flooding - Before & After

    Before: a farm in West Yeo, near Bridgewater on the Somerset Levels. Pic: Bing maps

After: The flooded farmland in West Yeo

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Before: The village of Moorland near Bridgewater on the Somerset Levels. Pic: Bing maps

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After: Flooded properties in Moorland

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Before: Walton-On-Thames, Surrey

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Flooding Fund: £2.3bn To Protect 300,000 Homes

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

More than 1,400 projects will receive a share of £2.3bn to protect against flooding for 300,000 homes.

But environmental group Friends of the Earth has suggested that figure is not high enough and there is still a £500m shortfall in the flood defences budget in the next parliament.

The spending includes major investment in areas including the Humber Estuary, with £80m set to be spent, and £196m for the Thames Estuary.

Ministers will also commit to spending £15.5m on flood defences in Somerset in the next six years - including £4.2m on the Somerset Levels which were hit badly by flooding last winter.

The Government has come under fire over funding for flood defences.

Danny Alexander MP, Chief Secretary to the Treasury, said: "We all saw the destruction and heartache caused by flooding last year and that is why this investment is vital to build up Britain's defences for the future.

"The projects we are announcing today will protect some of the country's most at risk locations ensuring that we will be as prepared as possible for future severe weather."

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  1. Gallery: Somerset Flooding - Before & After

    Before: a farm in West Yeo, near Bridgewater on the Somerset Levels. Pic: Bing maps

After: The flooded farmland in West Yeo

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Before: The village of Moorland near Bridgewater on the Somerset Levels. Pic: Bing maps

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After: Flooded properties in Moorland

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Before: Walton-On-Thames, Surrey

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New Garden City To Be Built In Bicester

A new garden city will be built in Oxfordshire under Coalition plans to deal with a housing shortage.

The new town, which would have up to 13,000 homes, would be built near Bicester and would include a £44m capital investment from the Government for roads including a new junction on the M40.

The plans will be outlined in the National Infrastructure Plan set to be published on Wednesday ahead of the Autumn Statement, alongside a range of other housing measures.

A Government loan would be provided for the development of amenities including green transport.

Ebbsfleet in Kent was announced earlier this year as the location for the first modern garden city.

Bicester has also expressed an interest and could receive a new railway station as part of the proposals announced by Deputy Prime Minister Nick Clegg.

Mr Clegg told the Daily Telegraph: "The Liberal Democrats have long argued that garden cities are an idea whose time has come again.

"I am delighted that Bicester can now be confirmed as a pioneer in what I hope will be another wave of garden cities in this country.

"Bicester will get help from the Government with both significant capital investment and in helping developers build the amenities that are required to be a true garden town."

Under the proposals, a series of new communities with green spaces, sustainable transport and spacious housing will be built.

Mr Clegg has previously promised at least 10 would be created if the Liberal Democrats are part of the next Government.

:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.


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England's Road Network To Get £15bn Investment

Written By Unknown on Senin, 01 Desember 2014 | 14.59

More than 80 new road schemes have been unveiled as part of a £15bn Government drive on English motorway and trunk routes in the next five years.

The schemes include a tunnel at the notorious bottleneck on the A303 at Stonehenge, as well as £1.5bn on extra lanes on some motorways.

Improvements to M25 junctions, the A27 in Sussex, approaches to Liverpool and the A1 in the North East are also part of the Road Investment Strategy, which was revealed ahead of the Autumn Statement on Wednesday.

Transport Secretary Patrick McLoughlin said the schemes were "the biggest, boldest and most far-reaching roads programme for decades".

The projects include:

:: South West - £2bn dual carriageway for entire A303 and A358, including a tunnel at Stonehenge.

:: North East - £290m dual carriageway on A1 to Ellingham.

:: North West and Yorkshire - M62 from Manchester to Leeds will have lanes increased, and increased capacity on trans-Pennine routes between Manchester and Sheffield.

:: North West - links to Port of Liverpool improved.

:: South East - £350m improvement to A27 to tackle congestion at Arundel, Worthing and Lewes.

:: East - £300m to put in dual carriageway sections on A47 and improved connections to A1 and A11.

:: London and South East - A third of junctions on M25 to be improved.

:: Midlands - Improvements to M42 east of Birmingham, and improved connections to Birmingham airport, National Exhibition Centre, Enterprise Zone and High Speed 2 interchange station.

There would also be £100m of funding to improve cycling provision at 200 key locations, and a £300m environmental fund to combat carbon emission and reduce noise pollution.

Mr McLoughlin said: "Roads are key to our nation's prosperity. For too long they have suffered from under-investment.

"This Government has a long term plan to secure the country's future and this £15bn roads programme is demonstration of that. Better roads allow us to travel freely, creating jobs and opportunities, benefiting hardworking families across the country."

Shadow transport secretary Michael Dugher said: "This is just yet another re-announcement on promised road improvements. The Government has 'announced' plans for road investment at least three times since 2013 and no additional money has been announced.

"Ministers will be judged not on what they promise to deliver in the next Parliament, but on what they have actually delivered in this one - and the truth is barely a shovel has been used in anger on our nation's highways over the last four-and-a-half years."

Motoring groups welcomed the proposals.

AA president Edmund King said: "We can no longer ignore the inadequate resources going into the mainstay of the UK transport system - our roads - which carry 86% of passenger journeys and more than 90% of freight.

"At long last the Government has recognised that we need a long term coherent plan for our roads, with guaranteed funding, to end the stop-start mess  experienced over the last few decades."

:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.


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Weak Growth Will Force More Cuts From Osborne

Britain is slowly getting back on its feet, but the recovery is still doing little to heal the public finances.

In the space of a year, the jobless rate in the UK has reduced rapidly, from 7.6% a year ago, to just 6% now.

Unemployment is back to pre-crisis levels and more people in work should mean more taxes and national insurance flowing to the Exchequer.

The Chancellor had certainly been counting on that cash to reduce shortfall between its resources, and its spending commitments.

Even the Government's accountants had predicted a 7% rise in income tax receipts for this year.

Yet the current tally shows they are only up about 0.4%.

Still, the tax year isn't over yet and the Office For Budget Responsibility expects tax receipts to be what they call "end-loaded" in 2014-15.

That is partly due to the shifting tax band brackets and a glut of self-assessment payments they expect to pour in after the deadline in January.

However, over the past year alone, factors such as weaker-than-expected wage growth, lower-than-expected residential property transactions and lower oil and gas revenues make it unlikely that either the Chancellor's or his accountants' expectations will be met.

Especially if you then factor in the lasting effects of the past six years.

Over the course of the financial crisis many highly paid jobs, like banking, have been lost and not yet replaced.

Meanwhile, the newly created jobs have been low paid and more workers are classed as "self-employed" - with both these groups paying less tax.

You will have noticed your tax free allowance has risen - to £10,500.

And with wage growth virtually stagnant, fewer workers are moving into higher tax brackets.

That all eats into the Chancellor's take.

This leaves the Treasury with far less revenue than predicted - and forced to make cuts and borrow more.

That's just what we expect George Osborne to do in the Autumn Statement on 3 December.

:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.


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Police Question UK 'Islamist Plot' Suspects

Written By Unknown on Sabtu, 08 November 2014 | 14.59

Counter-terror police have arrested four men in connection with an alleged Islamist terror plot following raids across west London and in the Thames Valley.

The arrests came ahead of this weekend's Remembrance Sunday and Armistice Day events.

Earlier this month, senior police officers and MPs said there was likely to be a significant rise in the number of armed police at Sunday's commemorations in London due to increased fears of a terror attack.

A 27-year-old man was arrested at gunpoint in a car in the street in Southall, west London.

Two other suspects, aged 22 and 25, were detained at addresses in Hounslow and Uxbridge, also in the west of the capital.

The fourth man, 19, was detained at an address in High Wycombe, Buckinghamshire.

Armed police took part in the operations in Southall, Hounslow and High Wycombe but no shots were fired.

The arrests were made on Thursday evening and in the early hours of Friday.

Counter-terrorism officers were leading searches of various properties in Hounslow, High Wycombe, Uxbridge, Southall, Greenford and Hayes.

The properties include a terraced house on Desborough Avenue in High Wycombe, Sky's Tom Parmenter reported from the scene.

Parmenter said there was some concern in the community over the arrest of the man in the town and the alleged "disproportionate" use of force by anti-terror police.

Youth worker Saqib Deshmukh, who knows the suspect, told Sky News: "One of the concerns that we heard was that it was a disproportionate use of force and armed response. Did it necessitate that? Was there a need for that to happen?

"Was there an actual threat on the ground? And that's a concern - that the actual number of forces and the level of force used is disproportionate and it doesn't merit it based on the evidence."

Local shopkeeper Sutha Tangaraj works opposite the house and told Sky News he saw the armed police arrive.

"At about 7pm or 7:30pm at least half a dozen armed police surrounded the house, they knocked the door and no one answered.

"A lady in the house eventually opened the door and they went and have since been searching ever since."

He said police were at the same address six months ago.

Mr Tangaraj said the man who lives at the property "is a regular customer and lives in the house with his family - his mother is very chatty".

The four men were all taken to police stations in central London. 

Scotland Yard said the arrests and subsequent searches were part of an "ongoing investigation into Islamist-related terrorism".

Sky's home affairs editor Mark White said: "Scotland Yard are officially giving very little in the way of information on these arrests, but sources are suggesting it is linked to an alleged extremist plot against the UK."

The arrests came a few months after the national terror threat level in the UK was raised from substantial to severe, meaning a terrorist attack is "highly likely".


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