The Spring Budget was a announced on 8th March by the Chancellor of the Exchequer, Philip Hammond.
PLEASE NOTE: This snapshot is not intended as an in-depth analysis of the Chancellor’s speech, but we hope this brief summary helps you gain a quick grasp on the key points delivered by the Chancellor from the Dispatch box.
- This budget takes forward the plan for a brighter future and sets the platform for a stronger, fairer, more global Britain.
- This Spring budget will be the last
- The budget will only take place in the Autumn with effect from Autumn 2017
- From 2018 there will be a ‘Spring Statement’ but no major fiscal announcements
- The Chancellor announced adjustments to previous growth forecasts from those previously announced in the 2016 Autumn Statement.
- Growth forecast for 2017 – revised up from 1.4% to 2.0%
- Growth forecast for 2018 – revised down from 1.7% to 1.6%
- OBR borrowing forecast revised to £51.7bn for 2016/17 (£16.7bn less than forecast in the Autumn Statement)
- OBR borrowing forecast revised down to £58.3bn for 2017/18
- OBR borrowing forecast revised down to £40.8bn for 2018/19
Taxation / Welfare / Finance
- Business with less than VAT threshold turnover will have quarterly tax reporting delayed by 1 year.
- Business Rates – Series of measures to cut business rates by £435m
- Any business losing small business rate relief will be subject to a cap to lessen the burden
- £1,000 discount to all pubs with a rateable value of less than £100,000
- Fund made available to local authorities for bespoke hardship cases
- Long term, preferred approach to be set out in due course by the government with a view to more regular revaluation
- Personal allowance to rise to £11,500 from 2017 / £12,500 by the end of this parliament
- Higher rate of tax threshold to increase to £45,000 from 2017 / £50,000 by the end of this parliament
- Preliminary thoughts provided on the subject of moving towards employed and self-employed being treated equally for tax
- Corporation Tax to be cut to 17% by April 2020 as planned
- Class 2 NICs to be abolished / From April 2018 Class 4 NICs for self-employed to be raised to 10% with a further 1% increase in 2019
- Director shareholder tax free dividend allowance to be reduced from £5,000 to £2,000 from April 2018.
- New NS&I bond will pay 2.2% on deposits up to £3,000 from April 2017
- National living wage to increase in April 2017 from £7.20 to £7.50
- Universal credit taper rate to be cut from 65% to 63% from April 2017
- £300m to support research talent on stem subjects.
- Ambition for UK to be a world leader in 5G – further £16m investment in digital infrastructure.
- Major projects to continue to be implemented across the Northern Powerhouse (£390m for North and £23m for midlands road network).
- Additional monies made available for low emission and driverless car technology.
- £350m for Scottish Government / £200m for Welsh government / £120m for incoming Northern Ireland executive.
Health / Education / Child Welfare
- 2017 will see the introduction of tax free childcare.
- From Sept, working parents with 3 & 4 year olds will get 30hrs of free childcare.
- Investment to be made in skills and education. New funding for a further 110 new free schools on top of the current commitment of 500.
- Free school transport to be made available to all children on free school meals who attend a free school.
- £216m over next 3 years to be invested into existing schools.
- T Levels to be introduced with 15 clear careers focussed routes / 16 to 19 year old students to have practical training time increased by over 50%. Additional £500m per year to be invested in 16 to 19 year olds.
- Education department to invest £140m in pilot projects for lifelong learning
- Care system placing pressure on NHS. £2bn grant funding pledged over the next 3 years for new social care packages in England / Green paper due later in 2017 on the subject of future financing of social care.
- Inappropriate A&E attendance – £100m capital available immediately for triage projects at English hospitals in time for next winter.
- No changes to fuel, alcohol and tobacco.
Minimum excise duty of £7.35 on cigarettes.
If you have any thoughts or questions on this years Spring Budget please leave a comment below.