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Last edited 23 Nov 2023

The autumn statement: What is it and how does it effect construction ?

The Autumn Statement is a Government update to the Commons on the state of the economy, it is delivered by the Chancellor in the Commons chamber in the month of October or November. Whilst the most significant tax and spending changes normally occur during the Budget, shorty after the Spring Statement ( sometimes called mini-budget) in around March, the Autumn statement can also include tax and spending decisions and in some years has been more significant than the Spring statement, depending on circumstances.

Procedurally the Government gives the public an opportunity to write a submission to the Treasury to suggest policies or comment on existing policies, to be considered for the statement, usually up until early October. Also part of the procedure the Office for Budget Responsibility (OBR), publishes an economic and fiscal outlook on the same day, to which the Chancellor responds during the speech / statement. Once the statement is made, the Shadow Chancellor is given time to respond in the house, followed by other MPs with questions, presided over by the speaker of the house.

If the Autumn Statement includes significant changes such as to taxes and spending, then legislation is likely to follow. For example in the statement in Autumn 2022 was followed by the Finance Bill which then became the Finance Act of 2023. It is however more common for the Autumn statement to remain a minor statement (in comparison with the budget statement) and there not be followed by legislative changes.

General practice has been to make one major statement per year, supported by minor or mini-budget statements (spring, summer or / and autumn). This process was introduced in 2018 to avoid having two major fiscal events in a single tax year, and to give Parliament and others more time to scrutinise any draft legislation.

The impact of the Autumn Statement on the construction industry can be very varied depending on its contents, any fiscal changes or changes to governing practices such as planning. It is often the case that ideas may be laid out within the Autumn statement speech, though detail of the changes in practice released following the speech, in part to allow time for MP's, industry and the public to respond, the government to guage those responses and any adjustments to be made.