The Chancellor, Philip Hammond has delivered his first Autumn Statement to the House of Commons, outlining the Government's plans for tax and spending in preparation for Brexit.
The Chancellor boosts infastructure spending and promises "fiscal headroom" to support the economy through Brexit.
Below we have listed some of the key highlights of today's statement:
- Abolishment of Autumn Statement – Creation of new "Spring Statement" from 2018, with Budgets in Autumn starting in 2017
- Tax-free Personal Allowance – The lowest tax threshold to be raised to £11,500 in April 2017, from £11,000 and the higher rate income tax threshold to rise to £50,000 by the end of the Parliament.
- National Living Wage – Set to rise from £7.20 an hour to £7.50 from April next year
- Corporation Tax – Cutting corporation tax to 17% by 2020
- Salary Sacrifice Schemes – Tax savings on salary sacrifice schemes will be stopped from next April with exceptions for ultra-low emission cars, pensions, childcare and cycling
- Fuel Duty – Rise cancelled for seventh year in succession
- Business Rates Relief – 100% business rates relief on new fibre infrastructure
- Growing Businesses – £400m into venture capital funds through the British Business Bank to unlock £1bn in finance for growing businesses
- Growth Deals – £1.8bn from Local Growth Fund to English regions
- Rural Rate Relief – Increased to 100%, "giving small businesses a tax break worth up to £2,900"
- NS&I Investment Bond – A new three-year NS&I Investment Bond available from spring 2017
- Insurance Thresholds – Employee and employer National Insurance thresholds to be equalised at £157 per week from April 2017
- Letting Agents – Ban on upfront fees charged by letting agents in England
- Public Spending – This year to be 40% of GDP – down from 45% in 2010
- Public Services – Government will meet commitments to protect budgets for key public services, defence, overseas aid and the pension "triple lock" until the end of this Parliament
- New Housing – £2.3bn housing infrastructure fund to help provide 100,000 new homes in high-demand areas
- Affordable Housing – £1.4bn to deliver 40,000 extra affordable homes
- Universal Credit – Taper rate will be reduced from 65% to 63% from April 2017
- Oil & Gas Sector – Carbon Price Support will be capped until 2020 and business rates reductions will be implemented
- UK Export Funding – Doubling UK export funding capacity
- Prison Officers – Funding for 2,500 more officers
For a detailed summary have a look at the Budget News section of the TFMC App. If you haven't downloaded it yet just search TFMC in your App Store.