3 min Read
08 Mar 2017

Written by Liam

Over 30 years experience in financial services, residential lettings and property sales. Director of a leading national estate agency chain, until leaving in 2008 to pursue other commercial interests. Vast experience in new business development, business change, management development and business strategy.

More about Liam

Budget 2017 Summary – Key points

 Economy

  • 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 Taxation

  • 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

Dividend Tax

  • The current tax free allowance of £5,000 will fall to £2,000 per year from April 2018

Savings

  • 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

Business

  • £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

Families/Education

  • 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

NHS/Social care

  • £100m to place more GPs in accident and emergency departments for next winter
  • Extra £2bn for social care over the next 3 years

Women

  • 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

Other points

  • £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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