Ten key takeaways from the 2023 Autumn Statement
Investment Week summarises ten of the key points from Chancellor Jeremy Hunt’s Autumn Statement, released earlier today (22 November). Credit: HM Treasury
The Office for Budget Responsibility revised down its GDP growth forecasts and brought up inflation predictions.
Inflation is now expected to average 4.8% in the final quarter of this year, 1.9 percentage points higher than predicted in the March forecast.
By 2028, prices are expected to be 7% higher than previously expected.
Meanwhile, growth forecasts were «slashed», with GDP growth expected to be 0.7% in 2024, 1.4% in 2025, 1.9% in 2026 and 2% in 2027, a significant drop from the OBR's forecasts earlier this year, which predicted growth at 1.8% in 2024, 2.5% in 2025, 2.1% in 2026 and 1.9% in 2027.
The Individual Savings Account regime will be simplified to make it easier for consumers to invest, as well as expanding the investment opportunities available, such as long-term asset funds and open-ended property funds «with extended notice periods».
Fractional shares contracts will also be available for purchase through ISAs, the Statement revealed that certain fractional share contracts will become «eligible» for the accounts, and further engagement with stakeholders will take place down the line to finalise implementation.
The Financial Conduct Authority said it was considering «interim solutions» to mitigate the impacts of current cost disclosure requirements on investment trusts, as the government «acts to implement a long-term legislative solution to the issue».
In a draft statutory instrument, the Treasury outlined the UK's new retail disclosure framework for Consumer Composite Investments, while noting concerns around current cost disclosure requirements.
Hunt
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