The Budget 2018 – Key Facts | Number One Mortgages
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The Chancellor of the Exchequer, Philip Hammond released The Budget just moments ago. This is the last Budget before Brexit….. To make it easy for you we have compiled a summary of the key points that may interest and affect you:

Main headlines

  • Personal allowance, the rate at which people start paying income tax, to rise from £11,800 to £12,500 in April – a year earlier than planned
  • The higher rate income tax threshold to rise from £46,350 to £50,000 in April
  • A new tax on non-recycled plastic packaging
  • Confirmation of an extra £20.5bn for the NHS over the next five years
  • 2018 growth forecast upgraded from 1.3% to 1.6%

The key points at a glance

Stamp duty and housing

  • All shared ownership 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
  • New partnerships with housing associations in England to deliver 13,000 homes
  • Guarantees of up to £1bn for smaller house-builders

Personal taxation and wages

  • Personal allowance, the rate at which people start paying income tax, to rise from £11,800 to £12,500 in April – a year earlier than planned
  • The higher rate income tax threshold to rise from £46,350 to £50,000 in April

Brexit

  • Extra £500m for preparations for leaving the EU
  • Spring Statement next March could be upgraded to full Budget if needed

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
  • A one-off £400m “bonus” to help schools buy “the little extras they need”

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

Business and digital

  • 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
  • £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
  • Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020

Defence and security

  • An extra £160m for counter-terrorism police
  • £10m for mental health care for veterans, to mark the centenary of World War One Armistice

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)

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

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

If any of the points mentioned have prompted you to consider a review of your financial future, be it housing or your outgoings or retirement planning, we are always available to help or recommend those that can. You can speak with us on 01273 736536 or email.