Chancellor George Osborne has updated MPs on the state of the economy and the Government's future plans in his Autumn Statement as the Office for Budget Responsibility (OBR) publishes its latest growth and borrowing forecasts for the next five years.

The key points are:

• Growth forecasts for UK economy cut 0.9% this year and 0.7% next year
• Borrowing forecasts revised up - an extra £111bn to be borrowed over five years
• Pay cap of 1% for public sector workers once two-year pay freeze ends
• Unemployment to rise from 8.1% this year to 8.7% next year
• More public sector jobs forecast to go - 710,000 over five years
• £40bn "credit easing" scheme to underwrite bank loans to small firms
• Working age benefits will be uprated by 5.2% in line with September's inflation rate
• Basic state pension to rise in line with inflation by £5.30
• Other increases in tax credits will not go ahead in 2012-13
• £5bn plan to improve national infrastructure over three years
• £1bn scheme to subsidise work placements for the young unemployed
• £500m house building plan in England
• January rise in regulated rail fares to be capped at 6.2%, not 8.2%
• Doubling of free childcare places for deprived two-year-olds to 260,000 in England
• 3p fuel duty rise due in January to be delayed or frozen
• Bank levy to be increased

So what does this mean?
Peter Thursfield , partner at our Hailsham office comments:
“Times are tough and will remain so for up to five more years according to the Government’s latest estimates. Now is the time for any small business to take stock of their situation and plan ahead to ensure they survive the next few years and indeed prosper.

We have seen several local businesses outperform the economy by making themselves different in the way they do things and adding more value than their competitors.

It’s not just about cutting costs and slashing prices, it’s more about customer service and care”.

If you would like to discuss your future business plans and have a no obligation chat about how we can help, please contact us today.

If you have any queries regarding this please contact Peter Thursfield (Partner) on 01323 846622 or email on peter.thursfield@plummer-parsons.co.uk

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