In a change to the long established Budget timetable, today Chancellor Philip Hammond delivered the first Autumn Budget for 20 years.
Our specialist tax and VAT partners from around the UK watched the announcement and have produced an ‘at a glance’ list of the main proposals, to help you digest the information that is relevant to you.
They have also provided their immediate reactions to some of these proposals, which you can view here.
Here are the key points of his speech.
- £3bn set aside for Brexit preparations
- Growth forecast for 2017 downgraded from 2% to 1.5%
- GDP downgraded to 1.4%, 1.3% and 1.5% in subsequent years before rising to 1.6% in 2021-22
- Debt will peak at 86.5% of GDP this year, then fall to 86.4% next year; then 86.1%, 83.1% and 79.3% in subsequent years, reaching 79.1% in 2022-23
- Commitment to research and development with £2.3bn allocated for investment and R&D tax credits going up to 12%
- VAT threshold for small business will be retained at £85k for the next two years
- Digital economy will see income tax applied on royalties relating to UK sales which are paid to a low-tax jurisdiction from April 2019
- Business rates revaluations will take place every 3 years, rather than every 5 years, starting after the next revaluation, currently due in 2022
- Tax-free personal allowance to rise to £11,850 in April 2018
- Higher-rate tax threshold to increase to £46,350 in April 2018
- National living wage to rise from £7.50 to £7.83 in April 2018
Housing and construction
- Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300k and on the first £300k for properties with a purchase price of up to £500k
- Pledge to build 300,000 new homes a year by the mid-2020s. £44bn in capital loans and funding guarantees to support the market; good news for smaller site developers
- Local authorities will be given power to charge 100% council tax premiums on empty properties
- Extra £2.7bn pledged to the Housing Infrastructure Fund, more than doubling it
- Duty to be frozen on beer, wine, spirits and most ciders (barring high-strength ‘white ciders’) to help ease the plight of pubs
- £1k business rates discount will continue for pubs in England
- Fuel duty rise for petrol and diesel cars scheduled for April 2018 has been cancelled. The freeze is expected to save a typical driver £160 a year
- Vehicle excise duty for diesel cars to rise by one band in April 2018. Applicable to cars which do not meet the newest standards. Not applicable to van owners.
- Existing diesel supplement in company car tax to rise by 1%
- £200m pledged by the government, to be matched by private investment, into a new £400m fund for electric charging infrastructure
- £100m towards helping consumers with the cost of purchasing a new battery electric vehicle
- £40m teacher training fund for underperforming schools in England.
- £600 per pupil taking maths or further maths at A-level for secondary schools and 6th form colleges
- 8,000 new computer science teachers to be recruited
Health and social care
- £2.8bn in extra funding for the NHS in England
- £10bn capital investment fund for hospitals
We will also be issuing a complete summary of the 2017 Budget tomorrow, which will offer a clear and concise commentary of the main Budget proposals, focusing on the issues pertinent to you, your family and your business.