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The November 2017 Budget: the key points

Posted on 22 November 2017 by Adam Hillier

The November 2017 Budget: the key points

On the 22th November 2017, the Chancellor of the Exchequer, Philip Hammond, delivered his second budget of the calendar year. Here are the key points:

Growth
• The forecast for growth in 2017 downgraded from 2% to 1.5%

• The GDP has been downgraded to 1.4% for 2018, 1.3% for 2019/2020, 1.5% for 2021 and finally rising to 1.6% for 2022;

• The annual rate of CPI inflation is predicted to fall to 2% later this year;

• By 2022, an extra 600,000 people are expected to be in employment.

Borrowing
• The annual borrowing this year was £8.4 billion lower than previously forecast in March at £49.9 billion;

• The revised forecast is for borrowing to fall each tax year from £39.5 billion in 2018/2019 to £25.6 billion in 2022/2023.

Personal Taxation
• The Personal tax allowance for basic rate taxpayers to rise to £11,850 in April 2018;

• The Higher-rate threshold to increase to £46,350;

• Air passenger duty rates for Short-haul and Long-Haul economy rates to be frozen.

Housing
• Stamp duty is abolished immediately for first time buyers purchasing properties worth up to £300,000;

• In more expensive areas, first time buyers can benefit from the initial £300,000 being exempt for the cost of a property worth £500,000;

• The goal to build 300,000 new homes by the mid 2020s;

• 100% council tax premiums on empty properties;

• A new homelessness task force established;

• £44 billion for government support to include loan guarantees and encourage construction skills;

• Compulsory purchases of land banked by developers for financial reasons;

• Reviewing delays in permitted developments moving forward.

Business
• Small business VAT threshold to remain at £85,000 for the next two years;

• £500 million for 5G mobile networks, fibre broadband and artificial intelligence;

• £540 million for the growth of electric cars to include more charging stations;

• £2.3 billion for research and development.

Duties
• Tobacco duty to rise by inflation plus 2%, as will the minimum excise duty on cigarettes and hand rolled tobacco;

• Duties frozen on beer, wine, spirits and some ciders, although high strength cider will increase;

• Vehicle excise duty rates for diesel cars not meeting latest standards will rise by one band in April 2018. However, this will not include van owners;

• Implementation of a new £220 million clean air fund;

• Scrapping of fuel duty rises for petrol and diesel cars scheduled for April 2018.

Savings
• £1.5 billion package to combat concerns about the delivery of Universal Credit to include the ending of the seven day initial waiting period, ensuring claimants receive their one month payment within five days of applying and the repayment period for advance payments to increase from six to twelve months;

• The National minimum living wage will rise to £7.83 per hour from April 2018;

Brexit
• £3 billion set aside for the implementation plan preparing the UK for leaving the EU.

Education
• A £40 million teacher training fund for schools that underperform in England;

• £84 million to recruit 8,000 new computer science teachers;

• Expected cost of £177 million to pay secondary schools and sixth-form colleges the sum of £600 for each pupil taking maths or further maths at A-Level.

NHS and Social Care
• An extra £2.8 billion in funding set aside with £350 million for the NHS in England this winter;

Transport and Technologies
• A transport fund of £1.7 billion for city regions;

• £320 million to be invested in the former Redcar steelworks site;

• The Scottish police and fire services to get VAT refunds from April 2018.

The Union
• £2 billion extra for the Scottish Government, 1.2 billion for the Welsh Government and £650 million for the Northern Ireland Executive.
 

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