Autumn Statement 2016: Industry reacts to 'topsy turvy spending dogma'

'No radical announcements'

Tom Eckett
clock • 6 min read

The investment industry has called this year's Autumn Statement a "non-event" with Chancellor Philip Hammond merely "tinkering at the edges" rather than introducing any major changes.

Property

Ed Crockett, Aberdeen Asset Management Property fund manager

"The additional funding for housing is certainly positive. But it needs to be channelled in such a way that it makes renting more affordable for those struggling to get by.

"It also needs to be provided in such a way that will actually encourage more institutional investors to invest."

Daniel Mahoney, head of economic research at Centre for Policy Studies

"The Autumn Statement's focus on boosting productivity - particularly through the promotion of infrastructure and housing - is welcome. However, the Chancellor simply announced further borrowing for investment. Although modest compared to Labour plans, this is a concern given that the debt to GDP ratio is set to reach 90%.

Salary sacrifice

Jon Greer, pension expert at Old Mutual Wealth

"The impact of the proposed change to salary sacrifice will be a minefield for these companies. Either it will affect their bottom line if they choose to keep the schemes as they are or they will have to ditch the benefit and risk employee upset.

"The biggest concern is it could lead to more ill-health and greater pressure on the NHS as companies may choose not to offer a private healthcare benefit, including regular health checks.

"Worse still, this could be the beginning of getting rid of salary sacrifice altogether."

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