AG百家乐在线官网

Nine most googled questions about the budget answered

Sky News answers the top questions that people asked Google during the chancellor's budget announcement on Monday.

LONDON, ENGLAND - MARCH 08:  Chancellor of the Exchequer Philip Hammond holds the budget box up to the media as he leaves 11 Downing Street on March 8, 2017 in London, England. Today's Budget will be the last one to take place in the spring. It is being replaced by an annual autumn Budget, the first of which is to be held later this year. The current Chancellor wants to simplify the process of setting taxes and government spending.  (Photo by Dan Kitwood/Getty Images)
Image: Philip Hammond announced the new budget on 29 October
Why you can trust Sky News

Philip Hammond has announced the final budget before the UK leaves the EU next year.

Here, Sky News answers the top nine questions that people asked Google about the chancellor's spending plan on Monday afternoon:

1. What is lettings relief?

Answer: A policy which reduces the amount of capital gains tax payable on the sale of a property that was used as the taxpayer's main residence at some point, and has also been let as residential accommodation.

Why are people googling this? Mr Hammond announced that from 2020 the government will limit lettings relief to properties where the owner is in shared occupancy with the tenant, and reduce the final period exemption from 18 months to nine months.

The 2018 budget: Our experts' verdicts
The 2018 budget: Our experts' verdicts

Sky's team of correspondents assess what the budget means for the UK, in areas including health and defence.

2. What is the OBR?

Answer: The Office for Budget Responsibility. It provides independent analysis of the UK's public finances.

More on Budget 2018

Why are people googling this? The chancellor referenced the OBR several times in his budget speech, using its forecasting figures as a basis for many of his announcements - including increasing the personal tax allowance.

3. How much have cigarettes gone up in the budget?

Answer: The price of tobacco will rise at the rate of inflation plus 2%, Mr Hammond announced.

4. Will wages go up?

Answer: Technically, yes. Mr Hammond announced a rise in the national living wage by 4.9% in April from £7.83 to £8.21.

He has also increased the personal tax allowance, meaning people will not have to pay tax on the first £12,500 of their salary from April 2019.

The chancellor also raised the higher rate 40% tax rate threshold from £46,351 to £50,000 from April 2019 - a year before expected.

He announced the government will give the low pay commission a new remit for national minimum wage rates beyond 2020, to be confirmed at next year's budget.

Philip Hammond showing the red box containing the budget
Image: Philip Hammond showing the red box containing the budget

5. What is PFI?

Answer: Private Finance Initiative. It creates public-private partnerships where private firms are contracted to complete and manage public projects.

Why are people googling this? Mr Hammond said the government is scrapping PFI contracts, ending a "Labour legacy".

6. What is the VAT threshold?

Answer: The current Value Added Tax (VAT) registration threshold is £85,000, meaning that if your business' annual turnover exceeds that number you must register for VAT to be added to products and services.

The tax is the third-largest source of government revenue, after income tax and national insurance.

Why are people googling this? Mr Hammond said he will leave the threshold unchanged for a further two years.

But he added that he is exploring options to address the "cliff edge effect" of VAT registration.

Philip Hammond
Image: The chancellor announced that austerity is finally coming to an end

7. What the budget means for you?

Answer: Read about all the key budget announcements here to find out.

8. What is austerity?

Answer: Policies that have been put in place to reduce government debt through spending cuts, tax increases or a combination of both.

Why are people googling this? Mr Hammond announced that "austerity is finally coming to an end".

But he said that "discipline will remain" to ensure Britain can "go forwards, not backwards and work together to build a Britain we can all be proud of".

Labour leader Jeremy Corbyn called the budget a "broken promise" and claimed that austerity is "grinding on".

9. Why is the budget on a Monday?

Answer: To avoid clashing with Halloween, which is on Wednesday.

Mr Hammond joked that holding it on Monday would avoid the inevitable headline puns which would accompany the two happening on the same day.

It also means there will be no clashes with the final month of Brexit negotiations in November.

Why are people googling this? Since 1962 the budget has been delivered on a Wednesday.