Budget 2017 Summary – Key points

3 min Read Published: 08 Mar 2017

 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