Inflation is now expected to hit between 2% and 3% with wages growth at around 2%, eating into disposable incomes. The OBR is expected to say its forecast was wrong, and it will be nearer £65bn. Public investment Ahead of the autumn statement, the chancellor has announced around £5bn of extra spending, but there could be more to come. Whitehall departmental spending After a deep cut in 2014 and a boost last year, another easing in austerity is expected. Higher rate threshold The manifesto also promised to raise the threshold for the 40p rate to £50,000 by the end of the parliament after a succession of freezes during the coalition years.

Source: The Guardian November 23, 2016 00:02 UTC