Budget Highlights - 2017

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Budget 2017

Budget Highlights

This is the first November budget to be delivered by a UK Chancellor.

Forecasts for the UK economy included:

  • Inflation rate expected to fall from 3% this year, to 2%.
  • Growth forecast down to 1.5%, from 2%, then to 1.4%, 1.3% and 1.5% in subsequent years.
  • Public borrowing now revised downwards to £49.9 billion, and to £39.5 billion in 2018-2019.
  • The national debt as a share of GDP is expected be 86.5% this year, and fall to 79.1% by 2022-2023.
  • Employment set to grow, with 600,000 more jobs by 2022.

Measures announced by the Chancellor:

Housing and transport

  1. Stamp duty to be abolished for first time buyers on properties up to £300,000, and on the first £300,000 in more expensive areas, including London. This is estimated to affect some 95% of first-time buyers.
  2. £44bn capital investment to boost the housing market.
  3. Target of building 300,000 new homes by mid-2020s.
  4. 100% council tax premium on empty homes.
  5. Review into delays in permitted development, and enquiry into 'land banking' by developers.
  6. £28m for counselling and mental health support for Grenfell tower victims.
  7. Young person's railcard extended to 26-30-year-olds.
  8. £1.7bn transport fund announced for cities.

Alcohol, gambling and fuel

Tobacco tax to rise by 2% above the RPI. Duty on beers, wine and spirits kept on hold.

Education (England)

  1. 8,000 new computer science teachers to be recruited at a cost of £84m.
  2. Maths incentive to secondary schools and sixth form colleges at £600 per student taking maths and further maths.
  3. Assistance for teacher training in poorly performing schools.

Business

  1. VAT threshold stays at £85,000.
  2. Business rate rises now linked to CPI and not the RPI.
  3. £540m to electric car support, including new charging points.

Personal allowances

To rise to £11,850  in April 2018.

40p income tax threshold

To rise to £46,350.

Personal savings, pay and welfare

  1. Additional £1.5bn to help with the delivery of universal  credit, following widespread criticism of failings in the system.
  2. Seven day wait for dealing with claims to be scrapped.
  3. Claimants to get a month's initial payment within 5 days.
  4. The National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83.

Health and social care

  1. £2.8bn extra for NHS (England).
  2. Additional £350m to help ease pressure on NHS over this winter.
  3. £10bn capital funding for hospitals.

Read more from:

The Telegraph

The Guardian

The Financial Times


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