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Summary of Budget 2018: Key points at-a-glance

“Philip Hammond is delivering his third Budget as chancellor from 15:30 GMT. Here are the key points of his speech so far. It is being updated as he addresses MPs.

The state of the economy

  • Era of austerity is “finally coming to an end”
  • 2018 growth forecast upgraded from 1.3% to 1.6%
  • Growth forecast of 1.4%, 1.4%, 1.5% and 1.6% in four subsequent years
  • 3.3 million more people in work since 2010
  • Wages growth at its highest in nearly a decade

The state of the public finances

  • Public borrowing in 2018 to be £11.6bn lower than forecast in March, representing 1.2% of gross domestic product, (GDP) the total value of goods produced and services provided
  • Borrowing forecast to fall in subsequent years to £31.8bn, £26.7bn. £23.8bn, £20.8bn and £19.8bn
  • Debt as share of GDP to fall from 85.2% in 2016-17 to 83.7% this year and to 74.1% by 2023-24

Brexit

  • Extra £500m for preparations for leaving the EU
  • Spring Statement next March could be upgraded to full Budget if needed
  • A commemorative 50p coin to mark the UK’s departure from the EU (announced on 29 October)

Alcohol, tobacco and fuel

  • Beer, cider and spirits duties to be frozen
  • Wine duty to rise in line with inflation
  • Tobacco duty will continue to rise by inflation plus 2%
  • Fuel duty to be frozen for ninth year in a row (announced on 3 October)

Personal taxation and wages

Stamp duty and housing

  • All shared equity purchases of up to £500,000 to be exempt from stamp duty
  • £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
  • Lettings relief limited to properties where the owner is in shared occupancy with the tenant

Welfare and pensions

Defence and security

  • An extra £160m for counter-terrorism police
  • An extra £1bn for armed forces, for cyber-capabilities and the UK’s new nuclear submarine programme
  • £10m for mental health care for veterans, to mark the centenary of World War One Armistice
  • £1.7m in education programmes to mark the 75th anniversary of the liberation of Bergen-Belsen concentration camp, in northern Germany

Business and digital

  • New digital services tax on UK revenues of big technology companies, from April 2020
  • Profitable companies with global sales of more than £500m will be eligible
  • Private finance initiative (PFI) contracts to be abolished in future
  • New centre of excellence to manage existing deals “in the taxpayer’s interest”
  • Annual investment allowance to be increased from £200,000 to £1m for two years
  • Contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
  • Business rates bill for companies with a rateable value of £51,000 or less to be cut by third over two years
  • Measure to benefit 90% of independent companies, cutting bill by £8,000
  • £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
  • New mandatory business rates relief for all lavatories made available for public use, whether publicly or privately owned
  • Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020

Education and health (England only)

  • Confirmation of an extra £20.5bn for the NHS over the next five years
  • A minimum extra £2bn a year for mental health services
  • New mental health crisis centre, providing support in every accident and emergency unit in the country
  • An extra £700m for councils, for care for the elderly and those with disabilities
  • £10m for air ambulances
  • A one-off £400m “bonus” to help schools buy “the little extras they need”

Transport, infrastructure and culture

  • A £30bn package for England’s roads, including repairs to motorways and potholes (announced on 27 October)
  • A 30% growth in infrastructure spending
  • Opening the use of e-passport gates at airports – currently available to people from Europe – to those from the USA, Canada, New Zealand, Australia and Japan

Environment and energy

  • A new tax on non-recycled plastic packaging
  • No tax on takeaway coffee cups but this will be reconsidered if the industry doesn’t make enough progress
  • £60m for planting trees in England
  • £10m to deal with abandoned waste sites”

Source – BBC News