It’s been a few weeks now since Chancellor of the Exchequer, George Osborne, revealed his Autumn Statement and the question on the lips of many is ‘how does this affect me?’ Like it not, this year’s annual Autumn Statement can have an effect on all individuals living the UK. The severity of its effect will differ depending on your individual circumstances but, with the current economic troubles, paying attention to the Autumn Statement is more crucial than ever. With implications for the housing market, pension schemes and tax levels, the latest unveiling of government plans are an important measure for times ahead.

A major change for many will be the decision to extend the State retirement age to 67. This means that for everyone who was born after 1960, your working life will be longer. Though not coming into effect until 2026, allowing peace of mind for those due to retire in the next 14 years, you’ll have to factor an extended working life into your plans if you’re to be affected by the changes. This could have significant consequences if you run your own business, with the extension in working years meaning you have to make suitable alterations to business projections. However, if you’ve already retired and claiming a pension then the outlook for 2012 look positive, with next April noting a £5.30 rise per week, offering the older generation £107.45 pre tax pension income per week.

Whilst the pensions market has noted a significant change, the housing market continues to enjoy the 0.5per cent base rate set by the Bank of England 32 months ago. For almost 10m predicted homebuyers, mortgages will note less interest, allowing you to keep more of your monthly income. Compared to four years ago, the average individual spends less than a third of their monthly income on housing loans instead of half, allowing many British individuals to be better off and have more savings in the bank.

Additional positive news has come if you’re looking to gain a foot on the property ladder as 50% discounts will become available for the ‘Right to Buy’ scheme, allowing you the possibility to buy social housing at reduced prices. The proceeds of these sales will then be put towards building new homes in an attempt to bolster the construction and housing markets in 2012, providing more suitable locations for residents to live.

With the government also assessing the need to encourage small businesses, they have also introduced a new ‘no fault dismissal’ process. If you have a company with less than ten staff members it will now be easier to dismiss staff, allowing you to grow your business as you see fit. In addition, you may see the benefits of a new investment scheme whereupon there will be a 50% income tax relief for investors putting money into small and start-up companies. More relief for contractors and business ventures will be the personal tax allowance increase to £8,105, allowing those running small businesses more income without heavy tax rates set upon them.

Whilst the government have no doubt taken steps to create more income to pay off debt, there is positive movement for individuals to further both their business and personal lives and, with more opportunities for purchasing homes and growing small companies, 2012 may be brighter year for all.