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2017 Autumn Budget

By Julie Keen. Posted On 23 Nov 2017. Last Updated 23 Nov 2017.


The reveal of the Autumn budget is here. While many were tuned in listening as the changes and implementations were announced, many were hard at work, so here is a run-down of what you can expect over the coming months.

Click here for the Autumn Budget Papers.

Let's start with some changes we can expect to see in business.

Business rates will switch to being increased by the Consumer Price Index (CPI) 2 years earlier than planned

Business Rates will rise by CPI from April 2018. Business rates currently rise by the Retail Price Index (RPI), a different way of measuring inflation which tends to be higher than the CPI.

 The tax-free personal allowance will inflate to £11,850 from April 2018

The personal allowance will rise from £11,500 to £11,850. This means that in 2018-19, a typical taxpayer will pay £1,075 less income tax than in 2010-11.

Pubs in England will continue to receive a £1,000 business rates discount next year

The discount applies to pubs with a rateable value of up to £100,000.

Stopping digital multinationals who hold intellectual property in low-tax countries from avoiding tax

The government will look to change international corporate tax rules to ensure digital companies pay a fair amount of tax.

 First-time buyers won’t have to pay stamp duty on homes under £300,000 from 22nd November 2017.

95% of first-time buyers who pay stamp duty will benefit.

First-time buyers of homes under £300,000 won’t pay stamp duty, homes between £300,000 and £500,000 will not pay stamp duty on the first £300,000. Normal rates of stamp duty apply above that. The average first-time buyer will save about £1,660. Meaning that 80% of first-time buyers from now, won’t have to pay stamp duty.

There will be no relief for those buying properties over £500,000.

300,000 new homes a year, an amount not achieved since 1970

£15.3 billion new financial support for 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.

The government will also create 5 new ‘garden’ towns.

A near New Record High – 32 Million people in Employment

Employment has risen over the past year and has been driven by full-time workers. Unemployment is at it’s lowest since 1975.

At the start of 2017, employment was slow but as the year has gone on, there has been steady growth. The UK economy in 2017 is forecasted to increase by 1.5%, before slowing down and growing slightly slower over the next 3 years. However, 2021/22 will see the UK economy picking up.

Although Debt is High, Since 2010, Borrowing has Fallen by Three Quarters

Although the UK still has a substantial debt of £1.7 trillion, the drop in borrowing means less debt will be added. In 2009/10 £1 in every £4 was borrowed. However, last year it was £1 in every £16.

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.

Tobacco duty will rise

Cigarette duty will increase by 2% above inflation. Hand-rolling tobacco duty will increase by 3% above inflation.

3. An extra £3 billion to prepare for Brexit over the next two years

The money will make sure the government is ready on day 1 of exit. It will include funding to prepare the border, the future immigration system and new trade relationships.

The NHS to get £6.3 Billion of New Funding

NHS Buildings will have an investment of £3.5 billion to be used on buildings and improvement of care.

£2.8 billion will go towards reducing patient waiting times, A&E performance improvements and help with treating people this winter.

 

The National Living & Minimum Wage will increase from April 2018

From April 2018 the National Living Wage for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour. This is expected to benefit over 2 million people and for a full-time person, this increase equates to over £600 a year increase.

The National Minimum Wage will also increase:

21 to 24-year-olds

18 to 20-year-olds

16 and 17-year-olds

Apprentices

£7.38 per hour

£5.90 per hour

£4.20 per hour

£3.70 per hour

 

Fuel duty will remain frozen for the eighth year

2018 will be the 8th year running, fuel duty will remain frozen saving drivers £160 a year on average.

For those aged 26 to 30, a new railcard will be introduced  

The government will work with the rail industry on a new railcard which will be introduced from spring 2018.

95% of passengers will not see an increase in their 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.

Households applying for Universal Credit will get more upfront support

From January 2018, Universal Credit households that qualify will be able to access a month’s worth of support within five days, that can be repaid over 12 months, interest-free.

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 cars

An extra £100 million will go towards helping people buy electric cars. The government will also make sure all new homes are built with the right cables for electric car charge points.

The 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 lead the world in developing practical uses for the technology.

Schools will get more investment for Maths and Science

All extra pupils that take A level or Core maths, the school will get £600.

£27 million will help improve how maths is taught in 3,000 schools. £49 million will go towards helping students resitting GCSE maths.

Specialist maths schools across the country will receive £350,000 of extra funding a year. 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.

A £220 million Clean Air Fund for local areas with the highest air pollution

Local authorities will be able to use this money 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 efficient 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

Following the success of the 5p carrier bag charge, which has reduced the use of plastic bags by 80%, The government will seek views on reducing single-use plastics waste like coffee cups, toothpaste tubes and polystyrene takeaway boxes.

Business rates will switch to being increased by the Consumer Price Index (CPI) 2 years earlier than planned

Business Rates will rise by CPI from April 2018. Business rates currently rise by the Retail Price Index (RPI), a different way of measuring inflation which tends to be higher than the CPI.

Pubs in England will continue to receive a £1,000 business rates discount next year

The discount applies to pubs with a rateable value of up to £100,000.

Stopping digital multinationals who hold intellectual property in low-tax countries from avoiding tax

The government will 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.

Funding for transport across England

£1.7 billion will go towards improving transport in English cities.

An extra £6 million will go towards the Midlands Connect motorway and rail projects.

An extra £337 million will go towards a fleet of new trains on the Tyne & Wear Metro.

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

 

 

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