Chancellor Philip Hammond has today delivered the 2018 Autumn budget.
The announcement took place on Monday, October 29.
Take a look at highlights from this year’s budget:
- During the budget, Philip Hammond started by stating that the era of austerity is “finally coming to an end”.
- The chancellor said the country is well funded for Brexit, stating that £2.2bn has already been allocated to departments for Brexit preparations.
- He also mentioned that £1.5bn was allocated for Brexit preparations for 2019-20 in the Autumn Budget last year.
- Philip Hammond expects government borrowing this year will be £11.6bn, which is set to fall from £31.8bn in 2019/20 to £26.7bn in 2020-21, £23.8bn in 2021/22, £20.8bn in 2022/23 and £19.8bn in 2023-24.
- A full spending review will also be launched next year, setting out its priorities for public spending.
- The chancellor noted that a £20.5bn increase has already been set for the NHS over the next five years.
- There will be a further £400m cash infusion for schools.
- An additional £420m will also be made available to local authorise for potholes and essential roadworks across the country.
- £1.6bn of new investment to support the government’s industrial strategy.
- There will be an additional boost for local authorities for social care.
- The chancellor has pledged another £1bn for the MoD this year and next
- A £10m donation has been promised to the Armed Forces Covenant Fund Trust to support veterans with mental health needs.
- The government plans to abolish the use of the private finance initiative (PFI) for future projects, however existing contracts will be honoured.
- National Productivity Investment Fund will rise to £38bn by 2023-24.
- Business rates for small English retailers with a rateable value of £51,000 or less will be cut by one third over the next two years.
- There are also plans to introduce a UK Digital Services Tax.
- There will be new mandatory business rates relief for publish lavatories
- Stamp duty has been abolished for all first-time buyers on shared-ownership homes up to £500,000
- There will be a further £500m for the Housing Infrastructure Fund to unlock a further 650,000 homes
- An extra £950m for the Scottish government by 2020-21
- An extra £550m for the Welsh government, with £320m for the Northern Ireland Executive
- £12m over next three years for fisheries technology and safety measure
- Free fuel duties for the ninth consecutive year.
- Tobacco duties will continue to rise by 2%.
- No change in duty rate for short-haul flights
- Duties on beer, cider and spirits to be frozen.
- Air passenger duty to rise from April 2019.
- New 26-30 railcard available across network by the end of year.
- Additional funding worth £1bn over the next five ears for claimants moving on to Universal Credit.
- There will be a new tax on the manufacture and import of plastic packaging that contains less than 30% recycled plastic.
- From April National Living Wage will raise once more, to £8.21 – a 4.9% increase.
- Personal income tax allowance and higher-rate threshold will be raised from April 2019 – A tax cut for 32m people.
Keep an eye out on CityX tomorrow for a full analysis of the Budget from Lincolnshire businesses.