Budget 2017: At a glance

The state of the economy
The Office for Budget Responsibility (OBR) has raised its economic growth forecasts for this year, expecting the UK economy to grow 2% rather than 1.4%.
In 2018 growth is forecast to slow to 1.6%, then in subsequent years 1.7%, 1.9%, and back to 2% in 2021.  
Inflation is forecast to hit 2.4% this year, falling to 2.3% in 2018 and 2% in 2019.
Unemployment at 11 year low.
 
Public borrowing/deficit/spending
Annual borrowing – OBR forecasts:
£51.7bn: 2016
£53.8bn: 2017 
£40.8bn: 2018
£21.4bn: 2019
£20.6bn: 2020-21
UK debt rose to 86.6% this year, expected to peak at 88.8% next year but will fall to 79.8% in 2021-22.
Public sector net borrowing forecast to fall from 3.8% of GDP last year to 2.6% this year, then 2.9%, 1.9%, 1% and 0.9% in subsequent years, reaching 0.7% in 2021-22.
Taxation/Pay
Real wages continue to rise in every year of forecast.
NI contributions will rise for the self-employed by 1% to 10% from April next year, rising again to 11% in 2019.
Tax-free dividend allowance for directors/shareholders will drop from £5,000 to £2,000 from April 2018.

Business
Corporation Tax will fall to 19% from April and 17% by 2020, as previously announced.
The Chancellor also announced a reduction in the red tape surrounding the R&D tax regime.
Business Rates: Tax brings in £25bn a year; trio of measures unveiled:
–          Any growing business exiting small business rates relief will pay no more than £50 more a month in business rates
–          Pubs with a rateable value lower than £100,000 which will receive a £1,000 annual discount.
–          £300m fund for local authorities to use for “discretionary relief” for business rates in “special hardship cases”.
Infrastructure/transport
Transport spending of £90m for the North; £23m for the Midlands
£270m for new technologies, £16m for 5G mobile technology and £200m for local broadband networks

Cigarettes/Alcohol/Fuel
New minimum excise duty on cigarettes based on a pack price of £7.35 introduced.
No increases in alcohol or tobacco duties on top of those previously announced.
Vehicle excise duty rates for hauliers and the HGV Road User Levy frozen for another year

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