Phillip Hammond revealed his first steps as Chancellor in Parliament on Wednesday afternoon, as he delivered the Autumn budget, which was headlined with the economy facing an increased amount of time in deficit and an increased amount of borrowing.
It wasn’t all doom and gloom though as there has been a fair of investment in infrastructure and research announced by Hammond, who was watched on by former Chancellor, George Osborne, two rows behind in the back bench.
Borrowing is expected to be £122bn higher in the period until 2021 than what was forecasted in the budget which took place in March. Alongside that, debt is expected to peak at 90.2% of GDP in 2017-18 which is up from 84.2% last year.
Other headlines include the national living wage rising from £7.20 p/h to £7.50, which take affect from April next year; in addition to this, it has been announced that there will be no further welfare cuts in this Parliament.
Here are is the rest of what you need to know after the Chancellor’s budget:
- Borrowing is expected to be £122bn higher in the period until 2021 than what was forecasted in the March budget.
- Debt will increase from 84.2% of GDP last year to 87.3% this year and 90.2% in 2017-18.
- Public spending is expected to decrease from 45% in 2010 to 40% of GDP this year.
- Government is expected to meet commitments to protect budgets for key public services until the end of this parliament.
- Office for Budget Responsibility has forecasted borrowing of £68.2bn this year, dropping to £59bn next year, followed by £21.9bn in 2019-20 and £20.7bn in 2020-21.
- No plans for any welfare cuts until the end of this parliament.
- The taper rate for universal credits is to be cut from 65% to 63% from April, which will be at a cost of £700m.
- Office for Budget Responsibility’s growth forecast has been upgraded to 2.1% from 2.0% in 2016 and downgraded to 1.4% from 2.2% in 2017.
- Government is no longer expecting a budget surplus in 2019-20 but have said that are committed to doing so as soon as it is practically possible.
- Growth is forecasted to increase from 1.7% in 2018 to 2.1% in 2019 but decrease to 2% in 2020.
- National Living Wage is to rise from April next year to £7.50 an hour from the current £7.20.
- From April 2017, employee and employer National Insurance thresholds are to be equalised at £157 per week.
- The threshold for income tax is to be raised to £11,500 in April, from the current £11,000.
- Tax savings on salary sacrifice and benefits in kind are to be stopped, with exceptions for ultra-low emission cars, pensions, childcare and cycling.
- By the end of the Parliament, higher rate income tax threshold is to rise to £50,000.
- From next June, insurance premium tax is to rise from 10% to 12%.
- To deliver 40,000 extra affordable homes, £1.4bn is to be invested.
- A housing infrastructure fund worth £2.3bn will help to provide 100,000 new homes in high-demand areas.
- “As soon as possible” a ban will be implemented on upfront fees charged by letting agents in England.
- The UK’s export funding capacity is to be doubled.
- £400m will be invested into venture capital funds through the British Business Bank to unlock £1bn in finance for firms which are growing.
- For a seventh year in succession, a rise in fuel duty has been cancelled, at a cost of £850m.
- Carbon Price Support will be capped until 2020, for the oil and gas sector with business rate reductions worth £6.7bn being implemented.
- More than £1bn will be invested in digital infrastructure.
- £23bn is to be invested on innovation and infrastructure over the next five years.
- Until 2020, £2bn per year will be invested in research and development funding.
- £1.1bn extra investment in local English transport networks
- To reduce traffic pinch points a total of £220m will be invested.
- To deliver the Oxford to Cambridge Expressway and for East West Rail, £110m will be invested.
- 100% business rates relief on new fibre infrastructure.
- To give “small businesses a tax break worth up to £2,900”, Rural Rate Relief will be increased to 100%.
- £1.8bn from Local Growth Fund to English regions.
- For repairs to Wentworth Woodhouse, said to be inspiration for Pemberley in Jane Austen’s Pride and Prejudice, £7.6m will be invested.
- There will be a roll out of “wave of ground-breaking 5G trials.”
Any Other Business
- Reforms will be made for whiplash compensation, to help cut the cost of motor insurance.
- Funding for a further 2,500 prison officers will be given.