Autumn Budget 2017 | What the Chancellor had to say
The Chancellor of the Exchequer, Philip Hammond, delivered his Autumn Budget to Parliament on 22 November 2017 – here’s a summary of what was announced.
Autumn Budget 2017 from RockWealth LLP
Stamp Duty Land Tax (SDLT) abolished on homes under £300,000 for first-time buyers from 22 November
95% of first-time buyers who pay SDLT will benefit. First-time buyers of homes worth between £300,000 and £500,000 will not pay SDLT on the first £300,000. They will pay the normal rates of SDLT on the price above that. This will save £1,660 on the average first-time buyer property. 80% of people buying their first home will pay no SDLT.
There will be no relief for those buying properties over £500,000.
New Stamp Duty Land Tax costs
300,000 new homes to be built a year
A sum of £15.3 billion announced for financial support for new house building over the next five years, taking the total to at least £44 billion. This includes £1.2 billion for the Government to buy land to build more homes, and £2.7 billion for infrastructure that will support housing.
Changes to the planning system are being introduced to encourage better use of land in cities and towns. More homes can now be built while protecting the green belt.
The Government will also create five new ‘garden’ towns.
National Living Wage increase
The National Living Wage for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018. Over 2 million people are expected to benefit, and for a full-time worker it represents over £600 extra a year.
Autumn Budget 2017 Guide Contents:
- Key announcements at a glance
- Business matters
- Enterprise Investment Schemes
- Small Business and Landlords
- Tax Evasion Crackdown
- Venture Capital Trusts
- Lifetime Allowance
- Stamp Duty Land Tax
Need some help?
Speak to one of our experts today.
01242 505 505
Tax-free personal allowance to rise with inflation
The personal allowance – the amount you earn before you start paying Income Tax – will rise from £11,500 to £11,850 from April 2018. The increase will mean a typical basic-rate taxpayer will be £1,075 better off a year than in 2010. The higher-rate tax threshold will also be increased to £46,350.
Extra £3 billion to prepare for Brexit over the next two years
An extra £3 billion announced to make sure the Government is ready on day one of the UK’s exit from the European Union. It will include funding to prepare the border, the future immigration system and new trade relationships.
£6.3 billion NHS new funding
£3.5 billion will be invested in upgrading NHS buildings and improving care. £2.8 billion will go towards improving A&E performance, reducing waiting times for patients and treating more people this winter.
The UK economy is forecast to grow by 1.5% in 2017, downgraded from 2%. It will then grow at a slightly slower rate in the next three years, before picking up in 2021 and 2022. Inflation is forecast to peak at 3% in the nal months of 2017, as measured by the Consumer Prices Index (CPI). It will then fall towards the target of 2% over the next year.
Borrowing has fallen, but debt is still high
In 2009/10, the UK borrowed £1 in every £4 that was spent. Last year, it was £1 in every £16. The fall in borrowing means less debt is being added every year. However, the UK still has a debt of over £1.7 trillion – around £65,000 for every household in the country.
More upfront support for households applying for Universal Credit
Households in need who qualify for Universal Credit will be able to access a month’s worth of support within five days, via an interest- free advance, from January 2018. This can be repaid over 12 months.
Claimants will be eligible for Universal Credit from the day they apply, rather than after seven days. Housing Benefit will continue to be paid for two weeks after a Universal Credit claim.
Low-income households in areas where private rents have been rising fastest will receive an extra £280 on average in Housing Benefit or Universal Credit.
Electric and driverless cars
The UK will set out rules so that self-driving cars can be tested without a safety operator. An extra £100 million will go towards helping people buy battery electric cars. The Government will also make sure all new homes are built with the right cables for electric car charge points.
World’s first national advisory body for Artificial Intelligence (AI)
The Centre for Data Ethics and Innovation will set standards for the use and ethics of AI and data. This will allow the UK to develop practical uses for the technology.
More investment in maths and science in schools
Schools will receive £600 for every extra pupil who takes A Level or Core Maths. £27 million will help improve how maths is taught in 3,000 schools. £49 million will go towards helping students resitting GCSE maths.
£350,000 of extra funding a year will be given to every specialist maths school that is set up across the country. The number of fully qualified computer science teachers will also rise from 4,000 to 12,000.
£64 million for construction and digital training courses
£34 million will go towards teaching construction skills like bricklaying and plastering. £30 million will go towards digital courses using AI. This funding is provided in advance of launching a National Retraining Scheme that will help people get new skills.
It will be overseen by the Government, the Trades Union Congress (TUC) and the Confederation of British Industry (CBI). They will decide on other areas of the economy where new skills and training courses are needed.
Clean Air Fund for local areas with the highest air pollution
Local authorities will be able to use £220 million to help people adapt as steps are taken to reduce air pollution. Possible ways the money could be spent include reducing the cost of public transport for those on low incomes or modernising buses with more energy-e cient technology.
The money will come from a temporary rise in Company Car Tax and Vehicle Excise Duty on new diesel cars.
Reducing single-use plastics waste
The Government will seek views on reducing single-use plastics waste through the tax system and charges. Disposable plastics like co ee cups, toothpaste tubes and polystyrene takeaway boxes damage our environment.
This follows the introduction of the 5p carrier bag charge, which has reduced the use of plastic bags by 80% in the last two years.
Business rates switch to being increased by the Consumer Price Index (CPI)
Business rates will rise by CPI from April 2018, two years earlier than planned. Currently, business rates rise by the Retail Price Index (RPI) – a di erent way of measuring in ation which tends to be higher than the CPI.
Business rates revaluations will take place every three years, rather than every ve years, starting after the next revaluation currently due in 2022.
Stopping digital multinationals who hold intellectual property in low-tax countries from avoiding tax
The Government will also look to change international corporate tax rules to ensure digital companies pay a fair amount of tax.
More money for Scotland, Wales and Northern Ireland
The devolved administrations will all get increased spending power in devolved areas, including education, health and transport. Each devolved administration can decide where this will be spent:
- There will be an increase of £2 billion for the Scottish Government
- There will be an increase of £1.2 billion for the Welsh Government
- There will be an increase of £660 million for a Northern Ireland Executive
- Police Scotland and the Scottish Fire
and Rescue Service will be able to claim VAT refunds which will save them around £40 million per year
New ‘Millenials Railcard’ for those aged 26 to 30
The Government will work with the rail industry on a new ‘Millenials Railcard’ which will be introduced from spring 2018.
Air Passenger Duty
Air Passenger Duty will be frozen for all economy passengers and all short-haul flights. It will rise for premium fares on long- haul flights and on private jets.
Fuel duty will remain frozen
In 2018, fuel duty will remain frozen for the eighth year in a row, saving drivers £160 a year on average.
Funding for transport across England
£1.7 billion will go towards improving transport in English cities. Half will be given to Combined Authorities with Mayors, and the rest allocated by a competition.
An extra £337 million will go towards a fleet of new trains on the Tyne & Wear Metro. An extra £6 million will go towards the Midlands Connect motorway and rail projects. Transport links along the Cambridge-Milton Keynes-Oxford corridor will be improved by:
- Completing the rail link between Oxford and Bedford, and Aylesbury and Milton Keynes
- Setting up a new East West Rail Company to speed up work on the rail link between Bedford and Cambridge
- £5 million to help develop plans for Cambridge South Station
- Building the Expressway road between Oxford and Cambridge
Pubs in England continue to receive a £1,000 business rates discount next year
The £1,000 business rates discount applies to pubs with a rateable value of up to £100,000.
Duty on beer, wine, cider and spirits will be frozen
The cost of a pint of beer or cider will be 1p lower than if duty had risen by inflation. The cost of a typical bottle of wine will be 6p cheaper. Cheap, high-strength cider will be subject to a new band of duty.
Duty on tobacco will rise
The duty on cigarettes will increase by 2% above inflation. Hand-rolling tobacco duty will increase by 3% above inflation.
Want to discuss the impact of Autumn Budget 2017 on your personal or business situation?
Overall, this was not the bold, game-changing Budget that many in the Chancellor’s own party were demanding. If you would like review what action you may need to take to keep your personal and business plans on track, or if you have any further questions, please contact us.Contact RockWealth