Despite beginning with such enthusiasm, fanfare and trumpeting and
a killer opening line of “a Budget for a future that will be full of change,
full of new challenges and full of opportunity”, Philip Hammond offered very
little in the way of revolutionary policies to ignite a nation, an economy or
anything else for that matter.
Having said that, he showed guts and humour (in the loosest sense)
in the face of what many have called the “impossible budget” given the
uncertainty that leaving the EU will bring. Add a ‘Boring Budget’ to the list
of things we can blame Brexit for! Perhaps, just perhaps, a boring Budget was
exactly what we needed given the uncertainty of leaving the EU in March 2019.
Perhaps.
Despite the bore of the detail, headlines will still be written,
media will still gorge on the carcass and politicians will spin the messages
for as long as they can stretch it out.
Here are your top take away headlines from the Budget and some
commentary you can actually trust!
Housing
“Complex challenges and no magic bullet” was used to summarise the
current housing crisis and a series of measures are to be introduced.
Stamp duty to be abolished immediately for first-time buyers
purchasing properties worth up to £300,000
£44 billion in Government support over the next 5 years by way of
capital funding, loans and guarantees.
Alcohol & Transport
Fuel duty rise for petrol and diesel cars scheduled for April 2018
scrapped.
Duty on beer, wine, spirits and most ciders will be frozen.
Vehicle excise duty for diesel cars that do not meet latest
standards to rise by one band in April 2018.
26 – 30 years olds will be entitled to a new railcard to gain 1/3rd
off rail travel.
Income Tax
The tax free personal allowance to rise from £11,500 to £11,850
from April 2018.
Higher rate tax threshold to increase from £45,000 to £46,350 from
April 2018.
Economy
Growth forecasts for the next 5 years have been significantly
downgraded from the March 2017 predictions by the independent Office for Budget
Responsibility.
The GDP growth forecast for 2017 downgraded from 2.0% to 1.5%.
GDP also downgraded to 1.4%, 1.3% and 1.5% in subsequent years
before rising to 1.6% in 2021 / 2022.
Brexit
£700 million has been invested in Brexit preparations so far.
A further £3 billion is to be set aside over the next 2 years to
prepare the UK for “every possible outcome” as it leaves the EU.
Public Borrowing, Deficit and Spending
The annual borrowing of £49.9 billion this year will be £8.4
billion lower than forecast in March 2017.
The borrowing forecast is to fall in every subsequent year from
£39.5 billion in 2018 / 2019 to £25.6 billion by 2022 / 2023.
Business
VAT threshold for small business to remain at £85,000 for the next
2 years.
£500 million is to be made available for 5G mobile networks, fibre
broadband and artificial intelligence.
£540 million is to be invested to support the growth of electric
cars, including more charging points
The rise in business rates to be pegged to a CPI measure of
inflation (not RPI).
NHS
£2.8 billion to be made available for extra funding for the NHS in
England.
£10 billion capital investment fund for hospitals.
North East
£320m to be invested in the former Redcar steelworks site.
£300 million to be invested in the NE Tyne Metro system to replace
40 year old infrastructure.
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