Budget 2018 bullet point round-up

3 min Read Published: 30 Oct 2018

Budget 2018 bullet point round-upEconomy

  • The Office for Budget Responsibility (OBR) has revised its growth forecast to 1.6% up from 1.3% for 2019 and to 1.4% for 2020 (up from 1.3%)
  • Chancellor forecasts 800,000 more jobs by 2023
  • OBR confirm that our national debt TO GDP to fall faster than forecast in the Spring Statement. Forecast to be 74.1% of GDP in 2023 to 2024
  • Government borrowing will be £11.6bn lower this year than forecast at the Spring Statement

Personal taxation

  • The personal allowance threshold to rise from £11,850 to £12,500 in April
  • The higher rate income tax threshold to rise from £46,350 to £50,000 in April
  • Following these both rates will rise in line with inflation
  • National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.

Alcohol, Tobacco etc.

  • Beer, cider and spirits duties to be frozen
  • Duty on a bottle of wine to rise by 8p from February 2019
  • Tobacco duty will continue to rise by inflation plus 2%
  • Fuel duty to be frozen for ninth year in a row
  • Remote Gaming Duty to increase to 21% for online gambling on "games of chance" from 2019

Business

  • New 2% digital services tax on UK revenues of  big technology companies, from April 2020 with global profits of £500m+
  • Contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
  • Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years
  • £650m to rejuvenate High Streets

Housing market

  • First-time buyers purchasing shared equity homes up to £500,000 to be exempt from stamp duty
  • £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
  • Lettings relief limited to properties where the owner is in shared occupancy with the tenant
  • New partnerships with housing associations in England to deliver 13,000 homes

Universal credit

  • Work allowances for universal credit to be increased by £1.7bn
  • 2.4 million working families with children to benefit by £630 a year
  • An extra £1bn to help welfare claimants transfer to the new consolidated benefit

Health/Social

  • NHS 10-year plan will include "health crisis services in every major Accident and Emergency department, children's crisis teams, mental health ambulances and a mental health hotline."
  • Extra £650m funding will be provided, in the form of grants, to Local Authorities to provide social care services.
  • Extra funding for the police force - both general and counter-terrorism
  • Treasury will mark the centenary of the armistice with a donation of £10m
  • An additional £1bn to the Ministry of Defence to cover the remainder of this year and next
  • £10 million of funding for the Air Ambulance service
  • £420m to local authorities for potholes and bridge repairs.