Key points from the Spring 2017 budget

By staff writers
March 8, 2017

The Chancellor Philip Hammond delivered his first budget today (8 March 2017) Here are the key points as presented by the UK government. Analysis has shown that much of what has been given (to social care, domestic violence etc.) is either being taken back elsewhere or is considerably outweighed by huge cuts since 2010. We will provide further context shortly. 

Growth

Growth for 2017 was forecast at two per cent, an increase on the 1.4 per cent in the preceding year.

The forecast for 2018 is 1.6 per cent, 1.7 per cent in 2019, 1.9 per cent in 2020, and two per cent in 2021. The previous forecasts for these years were 1.4 per cent, 1.7 per cent for 2018, 2.1 per cent in 2019, 2.1 per cent in 2020 and two per cent respectively.

Borrowing

£51.7 billion in 2016-17, £58.3 billlon in 2017-18, £40.8 billion in 2018-19, £21.4 billion in 2019-20, £20.6 billion in 2020-21, and £16.8 billion in 2021-22.

In November, borrowing was forecast to be £59 billion in 2017-18, £46.5 billion in 2018-19, £22 billion in 2019-20, £21 billion in 2020-21 and £17.2billion in 2021-22.

The Chancellor has abandoned hopes of a surplus by the end of the decade.

Personal tax allowance

£11,500 for basic rate taxpayers.

Small business tax

The introduction of quarterly reporting for businesses below the VAT registration threshold has been delayed by a year at a cost of £280 million.

Tax avoidance

£820 million of tax avoidance measures.

New financial penalty for professionals creating schemes defeated by HMRC.

Businesses  to be stopped from converting capital losses into trading losses.

Business rates

Capped so that rates rise by no more than £50 a month for small businesses losing their rate relief.

Pubs to receive a £1,000 discount on business rates where the rateable value is less than £100,000 (90 per cent of pubs) and a £300 million fund for discretionary relief for local authorities. 

Self-employed national insurance contributions

 £145 million will be raised by increasing the Class 4 national insurance contributions of some self-employed people. These will go up to 10 per cent (from nine per cent) and to 11 per cent in April 2019,

Duties

Vehicle excise duty frozen for hauliers and HGVs.

Sugar tax set at 18p and 24p per litre for the main and higher bands (more than 5g of sugar per 100ml and more than 8g per 100ml respectively).

New minimum excise duty on cigarettes.

No changes to duties on alcohol and tobacco.

Minimum wage ('living wage')

Will rise to £7.50 an hour in April.

Savings

A three year bond on savings up to £3000 will be available from April, paying interest of 2.2 per cent

Education and training

£320 million for 110 new free schools, taking the total to 500.

Free school transport extended to children receiving free school meals at selective schools.

£216 million for school maintenance.

Introduction of technical qualifications (T-levels), an alternative to A-levels for 16- to 19-year-olds.

£40 million for pilots on lifelong learning projects.

£300 million for 1,000 new PhD placements.

NHS

£325 million of capital for the first of the new sustainability and transformation plans (STPs), intended to improve healthcare.

£100 million for 100 onsite GP treatment centres in Accident and Emergency departments (in England).

Social care

£2 billion for services in England over the next three years

Green Paper on social care funding to be published later in the year.

Women

£20 million to combat violence against women and girls.

£5 million to support people returning to work after a career break

£5 million for projects to celebrate the 1918 Representation of the People Act.

Scotland, Wales and Northern Ireland

£350 million for  the Scottish government.

£200 million for the Welsh government.

£120 million for the Northern Ireland executive.

Local government

Midlands Engine Strategy to be published

£690 million competition for local authorities to tackle urban congestion.

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Keywords:budget2017 | budget
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