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Key facts from the budget 2018 – at a glance | UK news



Hammond's Opening Speech

Peter Walker, Political Correspondent: Hammond's initial sections are overtly political and reiterate the idea of ​​an end to austerity. This will, he says, "a budget that shows that the perseverance of the British pays off". It will, he promises, have a budget for "the strebers, the grafters and the keepers". However, at the end of this section, Hammond says that the era of austerity "is finally coming to an end" ̵

1; note the careful language; no over".

Brexit Hammond announces another £ 500 million for Brexit preparations in government departments.

  • This adds to the already announced £ 2.2bn and £ 1.5bn was announced in the spring statement. [19659005] Hammond says he is ready to brush up on the spring statement if necessary for a "full fiscal event".

  • PW: Hammond tries not to make Brexit too gloomy – he speaks of a "double-deal" dividend for the economy if an agreement with the EU is reached – but still promises to be vigilant, hence the idea that the Spring Declaration will become a "full fiscal event", which sounds very much like the code for an emergency budget if there is no agreement. [19659003] Growth

    • Hammond predicts growth of 1.3% for 2018.

    • Then 1.6% in 2019, 1.4% in 2020, 1.4% in 2021 and 1.5% in 2022 and 1.6% in 2023.

    • In March growth of 1.3% for 2019, 1.3% for 2020, 1.4% for 2021 and 1.5% for 2022 predicted.

    Borrowing

    • The forecast for borrowing will be £ 11.6 billion lower in 2018-1919 than forecast in the spring statement. This corresponds to 1.2% of GDP.

    • Borrowing is expected to reach £ 31.8bn in 2019-2018, to fall to £ 26.7bn in 2020-21, to £ 20.8bn in 2021-22, to £ 20.8bn in 2022-23 £ 19.8bn in 2023-24

    • Hammond says the government will reach its fiscal targets three years earlier, and that borrowing as a percentage of GDP in 2021 will fall to 1.3%. The section of the Chancellor ends with a political upswing as he sees falling debt as the "turning point of the great recovery of our nation " designated. He then adds a joke that gets great help from the Tory backbenches but does not work perfectly if I heard it right: "Fiscal Phil says tax rules OK".

      Debt

      • Debt is projected For the year 2018-2019, a share of 83.7% of GDP is forecast.

      • The debt-to-GDP ratio reached 85.2%

      • The debt-to-GDP ratio should decrease to 82.8% in 2019-2020, 79.7% in 2020-21, 75.7% in 2021- 22, 75.0% in 2022-23 and 74.1% in 2023-24.

      Defense Budget

      • Hammond announces an additional £ 1 billion for the defense budget for the rest of this year and next to increase cyber capabilities and anti-submarine warfare.

      • The Chancellor says the Treasury will donate £ 10m to the Federal Trustee Fund Fund to assist veterans on the centenary of the First World War truce. PW: Hammond begins his section on spending by accepting it, will contain some surprises, not least because the Prime Minister and others have made many announcements in progress, particularly on the NHS. The Chancellor says that those in his role usually have a few "bunnies in the hat" for the budget, but adds, "This year, some of my star-hare seem to have escaped just a little bit early, but there are also some new ones Elements, not least the extra money for defense, as well as an immediate boost to welfare – both areas that could encourage his Tory deputies.

        Schools [PW]: Tuition will be welcome, but some MPs will in Hammond and say it will help to "buy the little extras they need" when many school principals complain that they lack the money for important things like books and teaching assistants, and also £ 20 million less than the sum announced for potholes immediately thereafter.

        PFI

        Small Business

        • Hammond says he will contribute to the Education Fee f Smaller companies halve from 10% to 5% in a £ 695m apprentice training package

        • Extend the minimum employer exemption period from 12 months to 2 years

        PW: Hammond dedicates a relatively small tax deduction Quite a bit of time, as part of the budget, as a way to hammer home the much-vaunted argument that the Conservatives are the party of the post-Brexit firm – what he contrasts with the views of his Labor shadow, John McDonnell.

        Digital tax [19659004] The government will now introduce a British digital service tax. Hammond says it is expected to raise about £ 400m per year.

      • Digital technology giants are taxed at 2% on the money they make from British users.

      • The Chancellor said that the tax will be "narrowly aimed" at Britain generating revenue from certain firms, rather than from British technology start-ups.

      PW: A much-vaunted idea, and one in which the true test will come down to how much revenue it actually brings. But a politically secure new tax – not many MPs will receive the letters from constituents complaining about an additional burden on people like Google and Amazon.

      High Roads

      • The government provides £ 675m to create a "future highways fund" These councils can re-open their highways. "

      • The Chancellor says the government will wait until the next two years to a business valuation, for all companies with a taxable value of £ 51,000 or less will reduce their business interest rates a third .. Saving for 90% of shops, restaurants and cafes

      • There will also be a mandatory discharge of public toilets.

      PW: A not-so-expensive package of proposals that will be politically popular in the face of concerns among citizens about their local highways, but the pragmatist Hammond adds that changes to the shopping patterns are "irreversible" and that it's all about to adapt and not to turn back.

      Housing

      • According to Hammond the government will provide another £ 500 million housing infrastructure fund, which will unlock 650,000 homes. The Fund now totals £ 5.5bn

      Plastics Tax

      • The government will impose a new tax on the manufacture and import of plastic packaging containing less than 30% recycled plastic. Hammond says he will consult details and schedule.

      • There will be no special levy on disposable plastic cups. PW: This will not be a budget to cheer green advocates. The new plastic packaging tax is interesting, but Hammond has lowered the "Latte Levy" and the only other environmental measure announced is £ 10m to fight waste – which for budget reasons is money found on the back of the sofa.

        Universal Credit

        • The government will also increase the employment allowance to £ 1,000 a year under universal loan, charged to the Treasury of £ 1.7bn per year.

        PW: This is a little support for Tory backbenchers, many of whom praises UC publicly, but is seriously concerned about its implementation and the policy implications that it will have. Therefore, the increase in working allowances is particularly welcomed. But the additional £ 1bn for the transition is half the amount that was expected in the budget.

        Income Tax

        • Hammond says the government will honor its commitment to raise the personal allowance to £ 12,500 (currently £ 11,850) and the higher taxpayer threshold to £ 50,000 (currently £ 46,351) a year earlier as planned: April 2019.

        • The Chancellor says this is because the OBR estimates for public finances are better than expected

        • The minimum wage will also increase by 4.9% from £ 7.83 to £ 8 , 21 increase.

        PW: Hammond says, "I did not come into politics to raise taxes" – and promises not to. But it's worth remembering that Health Secretary Matt Hancock refused to rule out tax increases for higher NHS spending in the event of a no-deal Brexit this morning.

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        Verdict

        PW: A strangely reserved budget speech, not least because most of Hammond's announcements had already been made, which he confirmed. They probably intervened somewhere when the Chancellor said, "The hard work of the British people is paying off, and the austerity measures are coming to an end."

        The important thing is "to finish" – a phrase he uses at least four times has – and not "is finished". When Hammond ended, "The austerity measures are coming to an end, but the discipline will remain." This is still "sensible Hammond" in change.

        On the new announcements, it was probably a budget of politically popular, if relatively low-level commitments; For example, an end to the PFI projects, extra money for defense, a push for the streets and a new tax on the digital giants. But there are pitfalls. for example, if the extra money will be enough for UC.

        And I also suspect that the extra money for schools, a total of £ 400 million, could cause more fear than joy. Greedy schools will not enjoy hearing that this is for "the little extras" when many are struggling for the basics.

        Finally, as has often been said, this is a budget that depends almost entirely on decent Brexit. The agreement was reached and Hammond acknowledged that sudden changes – such as a no-deal move – would actually occur in the spring would mean a whole new budget.


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