Summary of Budget 2017: Key points at-a-glance for Members

Summary of Budget 2017: Key points at-a-glance for Members

Stamp duty and housing
  • Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000
  • To help those in London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty
  • 95% of all first-time buyers will benefit, with 80% not paying stamp duty
  • Long-term goal to build 300,000 homes a year by the mid-2020s
  • £44bn in government support, including capital funding and loan guarantees, to boost housebuilding
  • 100% council tax premium to be levied on empty properties
  • Compulsory purchase of land banked by developers for financial reasons
  • Review into delays in developments given planning permission being taken forward
  • £28m for Kensington and Chelsea council to provide counselling services and mental health support for victims of the Grenfell fire and for regeneration of surrounding area
  • New homelessness task force
Fuel
  • Fuel duty rise for petrol and diesel cars scheduled for April 2018 scrapped
  • Vehicle excise duty for diesel cars that do not meet latest standards to rise by one band in April 2018
  • Tax hike will not apply to van owners
  • Existing diesel supplement in company car tax to rise by 1%
  • Proceeds to fund a new £220m clean air fund
Personal taxation and wages
  • Tax-free personal allowance on income tax to rise to £11,850 in April 2018
  • Higher-rate tax threshold to increase to £46,350
  • National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83.
The state of the economy
  • Growth forecast for 2017 downgraded from 2% to 1.5%
  • GDP downgraded to 1.4%, 1.3% and 1.5% in subsequent years before rising to 1.6% in 2021-22
  • Productivity growth and business investment also revised down
  • Annual rate of CPI inflation forecast to fall from peak of 3% towards 2% target later this year
  • Another 600,000 people forecast to be in work by 2022
  • £3bn to be set aside over next two years to prepare UK for every possible outcome as it leaves EU
The state of the public finances
  • Annual borrowing £49.9bn this year, £8.4bn lower than forecast in March
  • Borrowing forecast to fall in every subsequent year from £39.5bn in 2018-19 to £25.6bn in 2022-23
  • Public sector net borrowing forecast to fall from 3.8% of GDP last year to 2.4% this year, then 1.9%, 1.6%, 1.5% and 1.3% in subsequent years, reaching 1.1% in 2022-23.
  • Debt will peak at 86.5% of GDP this year, then fall to 86.4% next year; then 86.1%, 83.1% and 79.3% in subsequent years, reaching 79.1% in 2022-23.
Pensions, savings and welfare
  • £1.5bn package to “address concerns” about the delivery of universal credit
  • Seven-day initial waiting period for processing of claims to be scrapped
  • Claimants to get one month’s payment within five days of applying
  • Repayment period for advances to increase from six to 12 months.
  • New universal credit claimants in receipt of housing benefit to continue to receive it for two weeks
Business
  • VAT threshold for small business to remain at £85,000 for two years
  • £500m support for 5G mobile networks, fibre broadband and artificial intelligence
  • £540m to support the growth of electric cars, including more charging points
  • A further £2.3bn allocated for investment in research and development
  • Rises in business rates to be pegged to CPI measure of inflation, not higher RPI
  • Digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction to be subject to income tax as part of tax avoidance clampdown. Expected to raise about £200m a year
Education (England only)
  • £40m teacher training fund for underperforming schools in England. Worth £1,000 per teacher
  • 8,000 new computer science teachers to be recruited at cost of £84m
  • Secondary schools and sixth-form colleges to get £600 for each new pupil taking maths or further maths at A-level or core maths at an expected cost of £177m
Nations/infrastructure/transport/regions/science
  • £320m to be invested in former Redcar steelworks site
  • Second devolution deal for the West Midlands
  • £1.7bn transport fund for city regions to be spent by mayors
  • £2bn for Scottish government, £1.2bn for Welsh government and £650m for Northern Ireland executive
  • Scottish police and fire services to get refunds on VAT from April 2018
  • Young person’s railcard extended to 26-30-year-olds
Health and social care
  • £2.8bn in extra funding for the NHS in England
  • £350m immediately to address pressures this winter, £1.6bn for 2018-19 and the remainder in 2019-20
  • £10bn capital investment fund for hospitals