Budget 2017 Summary: Key Points

Philip Hammond has delivered his first Budget as chancellor. These are the key points.

THE STATE OF THE ECONOMY

- UK second-fastest growing economy in the G7 in 2016

- Growth forecast for 2017 upgraded from 1.4% to 2%

- But GDP downgraded to 1.6%, 1.7%, 1.9% in subsequent years, then 2% in 2021/22

- Inflation forecast to rise to 2.4% in 2017/18 before falling to 2.3% and 2.0% in subsequent years

- A further 650,000 people expected to be in employment by 2021

PUBLIC BORROWING/DEFICIT/SPENDING

- Annual borrowing £51.7bn in 2016/17, £16.4bn lower than forecast

- Borrowing forecast to total £58.3bn in 2017/18, £40.6bn in 2018/19, £21.4bn in 2019/20 and £20.6bn in 2020/21

- Public sector net borrowing forecast to fall from 3.8% of GDP last year to 2.6% this year, then 2.9%, 1.9%, 1% and   0.9% in subsequent years, reaching 0.7% in 2021/22. But borrowing still predicted to be £100bn higher by 2020 than forecast in March 2016

- Debt rose to 86.6% this year, but will fall to 79.8% in 2021/22

PERSONAL TAXATION

- The main rate of Class 4 National Insurance contributions to increase from current rate of 9% to 10% in April 2018 and 11% in April 2019

- This will raise £145m a year by 2021/22 at an average cost of 60p a week to those affected

- No changes to income tax, VAT or other National Insurance categories

- Personal tax-free allowance to rise as planned to £11,500 this year and to £12,500 by 2020

PENSIONS AND SAVINGS

- Reduction in tax-free dividend allowance for shareholders and directors of small private firms from £5,000 to £2,000

- The measure will come into force in April 2018

BUSINESS

- £435m for firms affected by increases in business rates, including £300m hardship fund for worst hit

- Pubs with rateable value of less than £100,000 to get a £1,000 discount on rates they pay

- Increases for businesses losing existing relief will be capped at £50 a month

- A tax avoidance clampdown totalling £820m to include action to stop businesses converting capital losses into trading losses, tackle abuse of foreign pension schemes and introduce UK VAT on roaming telecoms services outside the EU

- Review of taxation of North Sea oil producers

EDUCATION

- £300m to support 1,000 new PhD places and fellowships in STEM (science, technology, engineering and maths) subjects

- Free school transport extended to all children on free school meals who attend a selective school

- Increased investment in schools of £216m

- New T-Levels to be introduced to give parity of esteem for technical education

- Number of hours of training for technical students aged 16 to 19 increased by more than 50%, including a high-quality, three-month work placement

HEALTH AND SOCIAL CARE

- £100m to place more GPs in accident and emergency departments for next winter

- Additional £325m to allow the first NHS Sustainability and Transformation Plans to proceed

- An extra £2bn for social care over next three years, with £1bn available in the next year

- Long-term funding options to be considered but so-called "death tax" on estates ruled out

HOUSING/INFRASTRUCTURE/TRANSPORT/REGIONS/SCIENCE

- Transport spending of £90m for the north of England and £23m for the Midlands to address pinch points on roads

- £270m for new technologies such as robots and driverless vehicles

- £16m for 5G mobile technology and £200m for local broadband networks

- £250m in funding for Scottish Government, £200 for Welsh Government and £120m for Northern Ireland Executive

WOMEN

- New funding totalling £20m to support the campaign against violence against women and girls

- A further £5m committed to project to celebrate the centenary of women first getting the vote, and to educate young people about its significance

- Funding of £5m to support people returning to work after a career break

 

Source: BBC