Autumn Budget 2018: An overview

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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.