Key Points from the Autumn Budget 2017

By
Nicole Jeary
-
Autumn Budget
The Chancellor delivered his second Autumn Budget on Wednesday.

Following the delivery of Philip Hammond’s highly-anticipated second Autumn budget as chancellor, we’ve summarised some of the key points to take from his speech.

Brexit Budget

£3 billion for Brexit negotiations, prepared to set aside further if necessary.
Economic forecasts disappoint
  • Growth forecast for 2017 downgraded from 2 percent to 1.5 percent
  • GDP downgraded to 1.4 percent. 1.3 percent and 1.5 percent in the years thereafter, before later rising to 1.6 percent in 2021-22

Borrowing and Public Expenditure

  • Annual borrowing £49.9 billion for the year, which is £8.4 billion less than originally forecast back in March
  • Borrowing forecast to decrease in each subsequent year from £39.5 billion in 2018-19 to £25.6 billion by 2022-23

Business rates

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  • £2.3 billion to enact changes to CPI from RPI brought forward to 2018.
  • Following the next revaluation, future revaluations to take place every three years.
  • Staircase tax: businesses affected will have original bill reinstated.
  • Discount for pubs (with a value below £100,000) extended by one year to March 2019.

Personal Tax

  • Tax-free personal allowance to rise to £11,850 by April 2018
  • Higher-rate tax threshold to rise to £46,350

The NHS

During his speech, the Chancellor announced the allocation of £2.8 billion to the NHS in England.

Tackling Housing
  • Stamp duty to be abolished for first-time buyers purchasing properties worth up to £300,000
  • In London and more expensive regions, the first £300,000 of the cost of a £500,000 purchase by first-time buyers will be exempt from stamp duty
  • 80 percent of all first-time buyers will not pay stamp duty
  • Target of 300,000 homes to be built yearly by the mid-2020s
  • £44 billion pledged in government support inc. loan guarantees, to boost construction skills
  • 100 percent percent council tax premium on empty properties
  • A commitment to end rough sleeping by 2027

Grenfell Tower

£28 million for Kensington and Chelsea council to provide counselling services and mental health support for victims, and to support regeneration efforts of the surrounding area.

The Northern Powerhouse

  • Chancellor announces £30m to improve digital connectivity on the trans-Pennine route.
  • A New city deal for the West Midlands

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Stamp Duty

Hammond looks to aiding the younger generation and first-time buyers. As a result, Stamp Duty abolished for first-time buyers on homes up to £300,000, and on the first £300,000 of properties up to £500,000.

In addition, as part of a bid for the conservative government to win over younger voters, Hammond also announced a New Railcard extended to 30 years old. 

Duties on Wine, Spirit and Beer

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For the full details of the Autumn budget 2017, see here.