We’ve prepared an overview of what his announcements could mean for you and your family:
National living wage – rises to the National Living Wage from April 2018 are confirmed. For those aged 25 and over it will rise 4.4%, from £7.50 an hour to £7.83 – giving full-time workers a further £600 pay increase.
Self-employed – the VAT threshold for small businesses will remain at £85,000 for two years. Following concerns about the impact of rises in business rates, the Chancellor will bring forward the planned switch from linking the increases from retail price index (RPI) to consumer price index (CPI) by two years, to April 2018. This move is worth £2.3bn to small businesses over the next 5 years.
Income tax – from April 2018, the tax-free personal allowance (the amount you can earn before you start to pay income tax) will rise to £11,850 with the higher-rate tax threshold increasing to £46,350.
Welfare – a £1.5bn package of measures has been announced to ‘address concerns’ about the roll-out of the new benefits programme ‘Universal Credit’, which is designed to replace a number of existing benefits such as housing benefit and income support.
House building – there will be £15.3 billion in new financial support for house building over the next five years taking the total to at least £44bn. The long-term goal is to build 300,000 homes a year by the mid-2020s. New planning reforms will also be introduced to ensure that more land is available for housing while still protecting the green belt. To encourage owners of empty homes to bring their properties back into use, local authorities will be able to increase council tax premiums from 50% to 100%.
Stamp duty – will be abolished immediately for first-time buyers purchasing properties worth up to £300,000. For more expensive property areas, the first £300,000 of the cost of a £500,000 purchase by first-time buyers will be exempt from stamp duty. This means that 80% of all first-time buyers will not pay stamp duty.
ISA allowances – the ISA annual subscription limit for 2018-19 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018-19 will increase to £4,260.
Your car – from April 2018, road tax for diesel cars that do not meet the latest standards will increase by one band. In addition the existing diesel supplement in company car tax will rise by 1%.
For electric car drivers, the chancellor has announced a range of new funds and tax incentives to help make them more accessible.
Fuel duty – the fuel duty rise for both petrol and diesel that was scheduled for April 2018 will be cancelled. Fuel duty has now been frozen for the eighth year in a row.
Tobacco duty – will increase at inflation plus 2% with an additional 1% duty on hand rolling tobacco this year and the minimum excise duty on cigarettes will also rise.
Alcohol duty – there will be an increase in duties on cheap, high-strength and low quality products – so called ‘white cider’. Duties on other ciders, wines, spirits and beer will be frozen.
Protecting the environment – the Government will investigate how a tax system and charges on single-use plastic items such as coffee cups and takeaway boxes can reduce waste.
Air passenger duty – short-haul air passenger duty rates and long-haul economy rates will be frozen. This will be paid for by an increase on long-haul premium-class tickets and on private jets.
Healthcare – to help ease the burden on the NHS, there will be an extra £2.8bn for the health service in England. Of that, £350m will be for this winter, £1.6bn in 2018-19 and the remainder in 2019-20.
Railcards – from spring 2018 a new rail card for 26-30 year olds will be introduced, giving 4.5 million more young people a third off most rail and tube fares.
Pension tax relief – the lifetime allowance for pension savings (the limit on the value from your pension schemes before triggering an extra tax charge) will increase to £1,030,000 for 2018-19.
State pension – the basic state pension will be increased by the triple lock. The rise in April 2018 will be 3%, a cash increase of £3.65 per week for the full basic state pension.
Joanne Palmer is a Senior Marketing Operations Manager based in our Lichfield office. Joanne enjoys long walks with her dog Daisy and spending time with her family.Read more of Joanne's articles