Omnium Wealth Management

Budget 2017: "Striking the right balance"

View or download our full Budget Report here

Chancellor Philip Hammond delivered his Spring Budget 2017 to Parliament on Wednesday 08 March.

Speaking to the House of Commons, Hammond said that the Budget “strikes the right balance between reducing our deficit, preserving fiscal flexibility and investing in Britain’s future”.

The Chancellor described his first and last Spring Budget as one that "takes forward our plan to prepare Britain for a brighter future".

The economic forecasts outlined by the Office for Budget Responsibility (OBR) were broadly in line with those from the Autumn Statement in November 2016:

  • Inflation is forecast at 2.4% in 2017, 2.3% next year and 2% in 2019.
  • Growth is predicted to be 2% in 2017 (up from 1.4% forecast at Autumn Statement 2016) and 1.6% in 2018.
  • Borrowing in 2016/17 is forecast to be £51.7 billion (£16.4 billion lower than in the autumn) and public sector net borrowing is predicted to fall from 3.8% of GDP in 2016 to 2.6% this year.

This Budget was light on new measures with very few new announcements that will come into effect for the 2017/18 tax year. However, below we have put together a summary of the key measures. 

Business announcements

  • Digital tax reporting will be delayed for some businesses.
  • There will be a business rates revaluation in England from April 2017.
  • New Corporation Tax rates will be introduced from April 2017.

Personal announcements

  • Class 4 NICs will increase to 10% in April 2018.
  • There will be a dividend allowance decrease.
  • NS&I Investment Bond and the tax-free personal allowance have been confirmed.

Other announcements

  • The VAT registration threshold is set at £85,000.
  • April 2017 changes to VAT include a new Flat Rate Scheme rate.
  • Various changes to duties were announced.
  • New legislation aimed at reducing tax avoidance will come in with immediate effect.

View or download our full Budget Report here

Get in touch

If you would like to discuss how any of the announcements made in the Budget may affect you or your business, please give us a call on 01483 205850

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