Autumn Budget Summary



Yesterdays budget was the final one Philip Hammond would deliver before Britain leaves the EU in March 2019. Whilst many people were unsure of what the outcomes would be, especially with no Brexit deal being agreed yet, did the Chancellor stand and deliver?

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Tax

From April 2019 the personal tax allowance has been increased from £11,580 to £12,500. For a typical basic rate tax payer this means an extra £130. For those on the higher rate threshold of 40% it means they will earn £730 a year more.

 

Universal Credit

This is the amount you can earn before benefits taper away. It will rise by £1,000, giving 2.4million families an extra £630 a year.

 

Education

£400m has been allocated to schools, in-year, to pay for things such as equipment and facilities. This will be paid directly to schools in a one-off payment averaging £10,000 per primary school and £50,000 per secondary school.

 

Minimum Wage

  • National Living Wage (minimum wage for over-25s) to rise from £7.83 to £8.21 in April 2019.
  • Minimum wage aged 21-24 to rise from £7.38 to £7.70
  • Minimum wage aged 18-20 to rise from £5.90 to £6.15
  • Minimum wage aged 16-17 to rise from £4.20 to £4.35
  • Apprentice wages to rise from £3.70 to £3.90

 

Councils

An extra £420m is immediately available to local authorities to be used for things like pothole repairs, bridge work and other repair work in their area.

 

Apprenticeships

The Chancellor announced a £695m initiative to help small companies hire apprentices. The Apprenticeship levy is to be reformed so that the small business contribution is halved from 10pc to 5pc and funded by the Treasury.

 

Business rates

A £675m fund is to be launched aimed at transforming the high streets. This will be done by improving infrastructure and transport access and provide business rates relief for small retailers. All retailers in England who are in premises with a rateable value of £51,000 or less will have their business rates bill cut by a third over the next two years. Up to 90pc of all independent pubs, shops, restaurants and cafes in England will save up to £8,000 a year when this comes in.

 

Benefits

These will remain frozen for four years, cutting almost £4billion a year from the benefits bill.

 

NHS

£2bn a year extra for mental health by 2023/24 with “crisis cafes”, specially-equipped ambulances, devoted school teams and guaranteed A&E support. £10m will be made available to air ambulances to help them keep flying.

 

Stamp Duty

Stamp duty will be axed for more first-time buyers including all buyers of shared ownership homes under £500,000.

 

Brexit

The Chancellor stated that if there is a No Deal Brexit the budget would have to be held again. However, he did say that these commitments will be funded irrespective of a Brexit deal. The Brexit No Deal planning fund has been increased from £1.5bn to £2bn.

 

Alcohol and cigarettes

  • The duty on spirits is frozen for the next year which means a saving of 30p a bottle.
  • The duty on beer and cider has also been frozen but only equates to a 2p saving on a pint.
  • Wine duty will increase at the inflation rate.
  • Cigarettes and other tobacco products duty will also continue to rise at inflation but with an additional 2% added.

Fuel

  • Fuel duty is frozen for ninth year in a row, costing Treasury a cumulative £9billion a year.
  • For the first time, vehicle tax will be entirely spent on roads. This will allow major highways to access a £28.8bn fund from 2020 to 2025.