Autumn Budget – 2018

budget-2018-image

Overview and Key Points

The Economy

  • 2018 growth downgraded from 1.5% to 1.3%
  • 2019 forecast raised from 1.3% to 1.6%
  • Subsequent years to see growth of 1.4%, 1.4% and 1.6%
  • 3 million more people in work since 2010
  • Wage growth is at its highest for nearly a decade
  • Public borrowing in 2018 to be £11.6bn, lower than forecast in the Spring statement
  • 2% annual average growth in departmental spending

Brexit

  • An extra £500m being set aside in preparation for leaving the EU
  • Next Spring Statement in March, could become a full budget if the need arises
  • A commemorative 50p coin to be minted, marking the departure from the EU

Personal taxation and wages

  • The personal tax allowance to rise from £11,850 to £12,500 in April 2019
  • The higher rate threshold to rise from £46,350 to £50,000 in April 2019
  • Both rates will then rise in line with inflation
  • National living wage to rise from £7.83 to £8.21 and hour from April 2019

Welfare and pensions

  • Work allowances for universal credit to be increased by £1.7bn
  • 4 million working families with children to benefit by £630 p.a.

Stamp duty and housing

  • All first time buyers purchasing shared equity homes up to £500,000 will be eligible for first time buyers relief
  • An extra £500m to go into the Housing Infrastructure Fund, enabling a further 650,000 homes to be built
  • Lettings relief limited to properties where the owner is in shared occupancy with the tenant
  • Guarantees of up to £1bn for smaller house builders

Business and digital

  • New 2% digital service tax on UK revenues of ‘Big Tech’ companies from April 2020
  • PFI contracts to be abolished in the future
  • Annual investment allowance to be increased to £1m for 2 years
  • Small companies contributions to apprenticeship levy to fall from 10% to 5%
  • Business rates for those with a rateable value of £51,000 or less to be cut by a third
  • £900m in business rates relief for small businesses and £650m to rejuvenate ‘High Streets’

Education and health

  • An extra £20.5bn for NHS confirmed
  • A minimum of £2bn extra each year for mental health services
  • More mental health ambulances and a 24 hour mental health crisis hotline
  • Councils to receive and extra £700m for care of elderly and those with disabilities
  • A one off payment of £400m for schools to purchase ‘little extras’

Transport, infrastructure and culture

  • £30bn for England’s roads, includes motorways and pothole repairs
  • 30% growth in infrastructure spending
  • ‘E-passport gates’ to be opened to travellers from USA, Canada, Australia, New Zealand and Japan
  • Air passenger duty to be in line with inflation

Energy and environment

  • A new tax on plastic packaging which does not contain 30% recyclable material
  • £60m for planting trees
  • £10m to deal with abandoned waste sites

Defence and security

  • An extra £160m for counter terrorism police
  • An extra £1bn for armed forces, for cyber capabilities and nuclear submarine programme
  • To mark centenary of WW1, £1m to fund veterans mental health
  • £1m to fund school trips to WW1 battlefields
  • £1.7m goes towards Holocaust education programmes

Alcohol, tobacco and fuel

  • Duties on beer cider and spirits frozen
  • Bottle of wine to increase by 8p in February, in line with inflation
  • Cigarettes to increase by 33p at 18:00 on 29th October, cigars to increase by 17p
  • Fuel duty frozen
  • Remote Gambling Duty to increase to 21% for online gambling from 2019

Nations and regions

  • An additional £950m for Scottish government, £550m for Welsh and £320m for Northern Ireland Executive between 2020 and 2021
  • New City and Growth deals for Belfast, North Wales and Tay Cities
  • £2m for Belfast to recover from Primark fire
  • £70m to develop the Defence and National Rehabilitation Centre

 

 

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