Chancellor Philip Hammond said he’d take a “balanced approach” to his second Budget of 2017.
Once again the speech had few headline-grabbing finance changes with no ‘giveaways’ or major surprises.
Instead, the focus of the Chancellor was to ready the economy for post-Brexit life.
Although increasing productivity is vital to boosting economic growth and wages, growth has “remained stubbornly flat” and continues to be an issue. As a result, the Office for Budget Responsibility revised down its forecasts for growth. Its expectations are that GDP will grow by 1.5% in 2017 (reduced from the 2% predicted at the Spring Budget back in March) and 1.4% in 2018 (down from 1.6%).
In an attempt to address this issue, The National Productivity Investment Fund, which supports innovation and infrastructure, is to be extended by a year and increased to more than £31bn.
The Chancellor also announced a range of investments, including:
• £3bn over two years to prepare for Brexit.
• £30m to develop digital skills distance learning courses.
• Funding to support building 300,000 new homes a year by the mid-2020s.
See below for a summary of measures announced or click here for our full Budget Report.
- R&D expenditure credit raised.
- VAT thresholds remaining unchanged for two years.
- Business rates will increase using the CPI measure of inflation from April 2018.
- Stamp duty has been abolished for most first-time buyers.
- Increases to the personal allowance.
- Increases to the national living and minimum wage.
- Crackdown on online VAT fraud.
- Scottish fire and police services gain.
- Infrastructure finance: devolution deals for two regions
- Six metro mayors to share half of £1.7bn transport fund and money for the nations.
- New anti-avoidance rules that relate to the taxation of income and gains accruing to offshore trusts are to be introduced.
Get in touch
If you would like to discuss how any of the announcements made in the Autumn Budget may affect you or your business, then give us a call on 01483 205850.