Autumn Statement 2012: key points From 2014/15 will further reduce lifetime pension relief allowance from £1.5 to £1.25m. Annual tax-free allowance reduction from £50,000 to £40,000 Basic state pension to rise by 2.5pc next year to £110.15 a week Increase in capped drawdown limit for pensioners from 100pc to 120pc Savings Overall ISA limit increased to £11,520 from next April Benefits and allowances Most working age benefits will get a real terms cut and increase by 1pc for next three years, including JSA, employment and support allowance, income support, child tax credit and working tax credit Local housing allowance rates to rise in line with existing policy next April but increases thereafter to be capped at 1pc Carer and disability benefits to be increased in line with inflation Business SME equity markets to be held directly in stocks and shares ISAs The main rate of corporation tax to be cut by 1% to 21% from April 2014 Bank levy rate to be increased to 0.13pc next year Temporary doubling of the small business rate relief scheme to be extended by a further year to 2014 £1bn extra capital for Business Bank The Economy Forecasts Office for Budget Responsibility forecasts 0.1pc contraction this year OBR forecasts the economy will grow 1.2pc next year, 2pc in 2014, 2.3pc in 2015, 2.7pc in 2016 and 2.8pc in 2017. The deficit this year has fallen by a quarter to 6.9pc this year. OBR forecasts deficit to come down to 6.1pc next year, 5.2pc in 2014, 4.2pc in 2015, 2.6pc in 2016 1.6pc in 2017 Net debt will miss target to fall by 2015/16. It will be 74.7pc this year, then 76.8pc next year, then 79pc, 79.9pc in following years, falling to 79.2pc in 2016/17 and again to 77.3pc in 2017/18. OBR forecasts government on course to eliminiate structural deficit in five years time Forecast for debt interest payments £33 billion lower than predicted two years ago Share of national income spent by the state to fall from 48pc of GDP in 2009/10 to 39.5pc in 2017/18 Employment 1.2m new jobs were created in private sector since election, 600,000 more than predicted Unemployment set to peak at 8.3pc rather than 8.7pc as previously forecast Government Spending Government total managed expenditure to be £745bn Period of austerity extended by one year to 2017/18 All money saved in next two years will be reinvested in £5bn capital spending Capital expenditure will also fund 120,000 new homes, flood defence schemes, broadband expansion including ultrafast broadband in smaller cities Whitehall department budgets cut by 1pc next year and 2pc in 2014, with NHS and schools exempt Transport £1bn to roads to upgrade key sections of A1, linking A5 with A1, upgrading M25 and dualling A30. £1bn loan to extend London's Northern Line to Battersea The High Speed 2 rail link, planned to run between London and Birmingham, will be extended to the North West and West Yorkshire. Science £600m more for UK scientific research infrastructure £270m for FE colleges £1bn to improve good schools and build another 100 free schools and academies Energy Incentives for shale gas drilling under consultation Local Government Local government budgets cut by 2pc in 2014 Aid 0.7pc aid spending maintained next year, though not exceeded Tax evasion and avoidance Prosecutions for tax evasion up 80pc 2,500 more tax inspectors going after evaders and avoiders Hundreds of millions of pounds of tax loopholes to be closed with immediate effect HMRC to have no budget cut and £77m more to fight tax avoidance by corporates and wealthy individuals £5bn expected to come in over next six years from undisclosed Swiss bank accounts through treaty with Switzerland What it means for the government purse Changes to welfare to save £3.7bn by 2015/16 New measures to save £1bn over four years from fraud, error and debt in the tax credit system Changes in tax-free pension allowance will save £1bn Clampdown on tax evasion and avoidance to bring in £2bn a year