Budget 2017 Summary – Key points
- Uk growth forecast upgraded from 1.4% to 2%
- Inflation forecast rising to 2.4% in 2017-18 before falling back to 2.3% and 2.0% in the following years
- By 2021 a further 650,000 are expected to be in employment
- Public sector borrowing forecast to fall from 3.8% GDP last year to 2.6% this year and reaching 0.7% in 2021-22
- Personal tax-free allowance to rise to £11,500 as planned and increasing to £12,500 by 2020
- The higher rate tax threshold will increase from £43,000 to £45,000 from April 2016
- Class 4 National Insurance contributions (self employed) to increase from 9% to 10% in April 2018 and 11% in 2019
- No changes to other National Insurance categories, income tax or VAT
- The current tax free allowance of £5,000 will fall to £2,000 per year from April 2018
- A new National Savings & Investment bond will be available from April paying 2.2% on savings up to £3,000
Overseas pension transfers
- From midnight on 8th March a new 25% charge will be levied to transfers of pensions to overseas schemes when the saver is not living in that country.
- The levy will not apply if the individual and the scheme are within the European Economic Area or if the scheme is provided by an employer.
Alcohol, tobacco and fuel
- A new minimum excise duty cigarettes based on a packet price £7.35
- No increase in tobacco or alcohol duties
- Vehicle excise duty rates for hauliers and the HGV Road User Levy frozen for another year
- £435m for firms affected by business rates, including £300m hardship fund for the worst hit
- A £1,000 business rates discount for small pubs with a rateable value of less than £100,000
- 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 encourage technical education
- £100m to place more GPs in accident and emergency departments for next winter
- Extra £2bn for social care over the next 3 years
- New funding of £20m to support the campaign against violence against women and children
- Funding of £5m supporting people returning to work after a career break
- £16m investment for 5G technology and £200m for broadband networks
- Transport spending of £90m for the north of England and £23m for the Midlands to address pinch points on roads
- £250m funding for Scottish Government, £200m for Welsh Government and £120m for Northern Ireland Executive
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