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Chancellor's Autumn Statement

Written By On 05/12/2013

George Osborne delivered his autumn statement earlier today and announced major changes to the pension plans. British people who are now in their forties will need to work until the age of 68 in order to qualify for their pension, because the age barrier will increase in the mid 2030s. It will go up by a further year to 69 just over a decade later in the late 2040s.

These numbers have been based on average life expectancy. The chancellor is expecting the new plan to save approximately £500 billion pounds.

He announced that a £2.95 a week state pension increase will be introduced next April.

Mr Osborne said

Britain's economic plan is working, but the job is not done.

He said that last March, the Office for Budget Responsibility predicted an annual growth for this year of 0.6%. They now give a revised figure of over double that of 1.4 %. They have also upped their prediction for next year to 2.7%. But for some unknown reason have given a dipping figure for the following year of 2.2%.

He continued to say that the OBR have also revised their figures for this year's job unemployment. They originally thought the figures would remain stagnant, but now they predict it to fall by 400,000.

They forecast this year to fall further from the current 7.6% to 7% by next year and predict it will down to 5.6% within five years.

He added that this fiscal year's revised deficit forecast is reduced by nearly one per cent to 6.8% and reducing further next year to 5.6%. The OBR predicts that it will go down further each year until 2018-19 when they expect a 'small surplus'.