Budget: At a glance

Philip Hammond started his Budget by saying the UK economy “continues to grow, continues to create more jobs than ever before, and continues to confound those who seek to talk it down”.

Brexit

With the UK preparing for its exit from the European Union, Hammond said the government will “express its resolve to look forwards not backwards”.

£700m has been spent on Brexit preparations so far, and another £3bn is to be allocated over the next two years.

State of economy

The UK economy is now expected to grow by 1.5% in 2017, down from the 2% forecast in March.
Growth has also been cut to 1.4% in 2018, 1.3% in both 2019 and 2020, picking back up to 1.5%, rising to 1.6% in 2022.

Borrowing

Borrowing is forecast to be £49.9bn this year – £8.4bn lower than forecast at the Budget earlier this year.
Borrowing to fall in each of next five years from £39.5bn next year to £25.6bn in 2022-23.

The UK’s deficit, as a percentage of economic output, or GDP, is expected to fall from 2.4% this year to 1.9% next year.

Small businesses

VAT threshold for small business maintained at £85,000 for next two years.

Business rates increases set by CPI measure of inflation, as opposed to RPI, from April.

Future business rate revaluations to take place every three years, not every five.

Northern Powerhouse

Northern Powerhouse, the Midlands Engine and elected mayors across the UK supported with a new £1.7bn Transforming Cities Fund.

Wages/Jobs

Rises to the National Living Wage – will rise 4.4%, from £7.50 an hour to £7.83in April.

OBR forecasts another 600,000 people in work by 2022.

Tax

From April, personal tax allowance to rise to £11,850 and the higher rate threshold to £46,350.

Transport

Fuel duty for petrol and diesel frozen.

New railcard to offer discounts for 18-30 year olds.

Extra funds and tax incentives for electric car drivers.
£400m for charging infrastructure fund, an extra £100m in Plug-In-Car Grant, and £40m for research into charging.

Cigarettes, alcohol, fuel

Tobacco duty to rise by inflation plus 2% as planned.
Additional 1% duty increase on hand rolling tobacco.

Increased duty on high strength alcohol, including some ciders.

Duty on other ciders, wines, spirits and beer frozen.

Housing

Stamp duty abolished for first time buyers on properties up to £300,000 – also available on first £300,000 of the purchase price of properties up to £500,000.

£44bn for housing through capital funding, loans and guarantees.

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