Budget 2018: All the key points announced by the chancellor
Everything you need to know from Chancellor Philip Hammond's budget speech to MPs in the House of Commons.
Tuesday 30 October 2018 08:14, UK
The key announcements from Chancellor Philip Hammond:
TAX AND WAGES
:: "Austerity is coming to an end but discipline will remain," the chancellor says.
:: Mr Hammond is raising the personal allowance to £12,500 and the higher rate threshold to £50,000 from April 2019 "one year early". He says it is an income tax "cut for 32 million people" putting £130 in the pocket of a typical basic rate taxpayer.
:: From April the National Living Wage will rise by 4.9% from £7.83 to £8.21.
:: Fuel duty is frozen for the ninth successive year. Tobacco duty escalator will continue to rise at inflation plus 2%. Beer, cider and spirits duties are frozen. Duty on wine is to continue to rise in line with retail price index (RPI) inflation.
CORPORATE TAX & SPENDING
:: UK is to introduce a Digital Services Tax (DST) from April 2020 which is expected to raise £400m annually. DST would only be paid by companies which are profitable and which generate at least £500m a year in global revenues. DST could be axed if the Organisation for Economic Co-operation and Development (OECD) agrees an international formula.
:: Reforms to so-called IR35 payroll rules for contractors in public sector to be extended to large and medium-sized firms in the private sector from April 2020. It means they will pay more tax and National Insurance Contributions.
:: For smaller firms taking on apprentices, Apprenticeship Levy will be slashed in half.
:: Support for business includes opening the use of e-passport gates at Heathrow and other airports to include visitors from the US, Canada, New Zealand, Australia and Japan. Some £200m more funding is going to the British Business Bank.
:: A package of measures to stimulate business investment and signal "Britain is open to business", with an increase to Annual Investment Allowance from £200,000 to £1m for two years.
:: Commitment to technology with £1.6bn of new investments "to support our modern industrial strategy".
WELFARE & DEBT
:: Universal Credit is "here to stay" but will get additional package of £1bn over five years for new claimant protections. Increases work allowances by £1,000 per year to "benefit 2.4 million working-families-with-children and people with disabilities by £630 per year".
:: Government to consult over interest-free loan facility for consumers in an effort to tackle problem debt
HIGH STREETS
:: For the next two years, all retailers in England with rateable value of £51,000 or less will have business rates bill cut by a third.
:: "High street under pressure as never before", the chancellor says, with support from £675m in co-funding for a Future High Streets Fund to help councils transform town centres.
:: A new mandatory business rates relief for all public lavatories "so that local authorities can, at last, relieve themselves."
BREXIT
:: Allocates extra £500m to government departments for "no deal" Brexit preparations.
:: Mr Hammond says if UK gets it right in Brexit talks UK will "harvest a double Deal Dividend" - a boost from the end of uncertainty and a boost from "fiscal headroom" being held in reserve.
OCEAN RESCUE
:: Battle against plastic in our oceans to be supported by new tax on on the manufacture and import of plastic packaging which contains less than 30% recycled plastic.
UK REGIONS
:: "Decisions announced in this budget means out to 20-21 an additional £950m for the Scottish government; £550m for the Welsh government and £320m for a Northern Ireland executive.
HOME OWNERSHIP
:: Stamp Duty is to be abolished for all first-time buyers of shared ownership properties valued up to £500,000. This will be applied retrospectively to the date of the last budget. A further £500m will go to the housing infrastructure fund.
ROAD TRANSPORT
:: Local authorities' battle against potholes to get £420m "made available immediately".
SCHOOLS
:: School budgets to be boosted by £400m one-off bonus to help get kit they need.
DEFENCE
:: £160m more to go to police counter-terrorism battle in next financial year.
:: An additional £1bn for the Ministry of Defence to be spent this year and next to help battle against cyber warfare and support submarine programme.
HEALTH
:: "We are delivering historic £20.5bn real terms increase for the NHS in full over the next five years." An NHS 10-year plan will include new mental health crisis service including specialist ambulances and hotline.
:: Local authorities in England to get extra £650m of grant funding for 2019/20 to bolster social care.
ECONOMY & FORECASTS
:: Office for Budget Responsibility (OBR) upgrades forecast for GDP growth in 2019 from 1.3% to 1.6%, then 1.4% in 2020 and 2021; 1.5% in 2022; and 1.6% in 2023.
:: OBR: "Borrowing this year will be £11.6bn lower than forecast at the Spring Statement", falling from £31.8bn in 2019/20 to £26.7bn in 2020-21, £23.8bn in '21'-'22', £20.8bn in '22-'23', and £19.8bn in 2023-24, "its lowest level in over 20 years."
:: "We meet our target to get debt falling three years early. "Fiscal Phil says: 'Fiscal Rules OK'," Mr Hammond tells MPs.