Brexit
An extra £3 billion has been set aside by the government to prepare for Brexit over the next two years. The money will be used to prepare the border, the future immigration system and ‘new trade relationships.’
Economy
UK GDP growth forecast for this year has been reduced from 2% to 1.5%. It is then forecast to grow at a slightly slower rate in the next three years, before picking up in 2021 and 2022CPI inflation is forecast to peak at 3% by the end of the year and then fall towards the target of 2% over the next 12 months.
Another 600,000 people forecast to be in work by 2022
Annual government borrowing will be £49.9bn this year, £8.4bn lower than expected in March
Stamp duty and house building
Stamp duty will be axed from today for first-time buyers purchasing properties up to £300,000
In London and other higher priced areas, the first £300,000 of the cost of a £500,000 purchase will be exempt from stamp duty
Councils given powers to charge 100% council tax premium on empty properties
There may be compulsory purchase of land held back from building by developers
The government will push ahead with plans to create 5 new ‘garden’ towns
Income tax and wages
The basic rate tax-free personal allowance will rise from £11,500 to £11,850 in April
Higher-rate tax threshold will rise to £46,350
The National Living Wage for over-25s will go up in April by 4.4%, from £7.50 an hour to £7.83.
Pensions
No changes to £40,000 annual pension savings limit, lifetime allowance raised in line with inflation to £1,030,000 for 2018/19
Tax abuse
The Treasury plans to stop digital multinationals who hold intellectual property in low-tax countries from avoiding tax
There will be raft of smaller measures to close loopholes and tackle offshore tax abuse
VAT
Threshold for small firms to stay at £85,000 for at least two years
Other measures
Fuel duty frozen, rise in tobacco duty of 2% above inflation, most alcohol duties frozen except those on high strength ciders.
More help for maths and computer science teaching in schools
Business rates move from RPI to CPI increases from April which should reduce increases.