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Key points for investors from the Autumn Statement

In what was a cautious Autumn Statement there were some interesting points for investors to consider
November 24, 2016

Besides grandiose pledges around housing and the chancellor Philip Hammond's extra fiscal wriggle room, there were other parts of this low-key Autumn Statement investors may be interested in.

1. Funding

The standout figure was £23bn, which will be pumped into a national productivity investment fund over five years. This will be targeted at areas including roads and railways, which could benefit transport-related stocks such as the bus operators, which get paid a bonus for being on time, and might provide some relief for rail operators if big infrastructure work is completed more quickly. The UK's science and technology-facing businesses could also reap rewards with £2bn per year in extra funding from 2020-21.

2. Saving

A new savings bond through National Savings & Investments with a guaranteed 2.2 per cent rate was launched, albeit with little fanfare from commentators who called it "hardly rewarding". The bond will be available for 12 months from spring 2017, allow contributions from £100 up to £3,000 and be available to all savers aged 16 and over. There will be more money in our pockets generally, though, with the tax-free personal allowance confirmed to rise to £12,500 by the end of parliament - after which it will rise with inflation - and the higher-rate tax threshold moved to £50,000.

3. Business

The retail and hospitality sector may have breathed a sigh of relief as the rise in the national living wage was 10p less than some had feared. It will still rise from £7.20 now to £7.50 in April, but the lower-than-expected increase may at least curb the rise in costs many companies in the sector are facing from rising wages and imported inflation due to sterling's fall.

4. Tax

The commitment to push corporation tax down to 17 per cent by 2020 was maintained by Mr Hammond. Fuel duty remained frozen for the seventh year running and salary sacrifice schemes will be removed from April, with areas such as pension contributions and childcare vouchers excluded.