Last week, Philip Hammond gave his Budget announcement. A summary is given below and surprisingly, there was no shock pension content on this occasion.
- £3bn set aside for Brexit preparations
- Revised down to 1.5% in 2017 from 2%.
- Forecasts are 1.4% in 2018, 1.3% 2019, 1.3% 2020, 1.5% 2021 and 1.6% 2022.
- In March, the forecasts were 1.6% in 2018, 1.7% 2019, 1.9% 2020 and 2% 2021
- £49.9bn this year, down from previous estimate of £58bn.
- Down from £39.5bn next year to £25.6bn in 2022-23
Research and development
- £2.3bn of investment.
- Tax credit 12%.
- Investigate charges on one use plastic waste.
- £20bn of new investment in UK knowledge-intensive industries.
- £2.5bn from the business bank.
- Encourage pension fund investment.
- Boost to EIS.
- Replace funding from Europe
- £400m charging infrastructure.
- Those charging electric vehicles at work will not face taxes
- 1 percentage point increase in company car tax.
- From 2018, an increase in tax on cars that don’t meet standards – to go up by one band
- Maths: £40m for maths teachers; £600 premium for maths students in A levels.
- Computing: triple number of science teachers to 12,000; new national centre for computing.
- National retraining scheme for digital expertise.
- £1.7bn transforming cities fund
Scotland, Wales and Northern Ireland
- £650m extra for NI.
- £2bn extra for Scotland.
- £1.2bn extra for Wales
- Tax changes to encourage investment (North Sea Oil)
- £1.5bn to remove seven-day waiting period; new claimant in receipt of housing benefit will get it for two weeks.
- Ongoing ability to apply for advance
- £125m of funding to help 140,000 people
- Frozen at £5,000
- General ISA limit remains frozen at £20,000
- Junior ISAs and Trust Funds will be increased in line with CPI to £4,260
- Up to £7.83 from £7.50
- Basic rate rises to £11,850 from April; 40% threshold increases to £46,350.
- Chancellor has previously pledged to increase basic rate to £12,500 by 2020.
- Personal Allowance to increase to £11,850 (April 2018)
- Lifetime allowance for pensions – The lifetime allowance for pension savings will increase in line with CPI, rising to £1,030,000 for 2018-19.
- Basic State Pension will be increased by 3% (£3.65 per week)
- New State Pension also be increased by triple lock (£4.80 per week)
- The ability to transfer up to 10% of unused personal allowance to partners will now be allowed where the partner had died before making the claim. Claims can be backdated by 4 years
- Freeze allowance
Duties on spirits, wine and beer
- Frozen with the exception on high strength alcohol (White Cider being used as an example)
Duties on Tobacco
- Inflation plus 2%
- 4.5 million people aged 26-30 to get a third off rail fares
- Increase on air passenger duty on premium class tickets
Fuel duty rise
- £10bn capital investment in frontline services over the course of this parliament.
- £2.8bn of extra funding for England.
- Pay review will be undertaken in 2018/2019
- Tax avoidance
- Measures to save £4.8bn by 2022-23
- £2.3bn cost to bring forward the change to CPI from RPI brought forward to 2018.
- After next revaluation, future revaluations to take place every three years.
- Staircase tax: businesses hit will have original bill reinstated.
- Discount for pubs (rateable value less than £100,000) extended by one year to March 2019
- Consultation on threshold of £85,000 at which small businesses pay VAT
- £200m a year extra from income tax on UK sales
- £28m for mental health services; local regeneration for Kensington and Chelsea council
- 100% council tax premium on empty properties.
- £28m in three new housing pilots – in the West Midlands, Manchester and Liverpool – to halve rough-sleeping by 2022.
- £44bn for capital funding to help build 300,000 homes annually by 2020.
- £8bn of financial guarantees to support private building.
- £2.7bn housing infrastructure fund.
- £34m for construction skills.
- A review to be chaired by Oliver Letwin to look at ways to speed up planning permission.
- Five new garden towns.
- One million new homes on the Cambridge Milton Keynes Oxford corridor by 2050
Stamp duty – from immediate effect
- Abolished for first-time buyers on homes up to £300,000, and on the first £300,000 of properties up to £500,000.