The long-awaited Autumn Budget is upon us – after months of speculation, the government will set out its plans for our finances.
Chancellor of the Exchequer Philip Hammond will make his announcement at 12:30pm. We’ll bring you all the latest news – visit our Budget hub here.
There were a few things we already know to expect, including:
- An update on our economic performance
- Plans to deliver 300,000 new homes
- Student loan reforms, including a tuition freeze and a higher payment threshold
- Incentives for millennials like an under-30s railcard
- A review into passenger rights, following the collapse of airline Monarch
But bigger changes may be afoot, with Chancellor Philip Hammond reportedly facing pressure to deliver a bold, radical budget to win back public support.
Here are the key things that may affect your finances from today’s announcement:
The personal tax threshold will rise from £11,500 to £11,850 from 2018/19 and the higher-rate tax threshold (those who will pay 40% tax) will rise from £45,000 to £46,350.
As well as confirming plans to deliver 300,000 new homes a year from 2020, the Chancellor also announced that stamp duty on homes under £300,000 will be abolished for first-time buyers. Normal rates will apply for the proportion of the value above £300,000.
The government estimates that 80% of first-time buyers will not pay stamp duty, saving around £1,660 on average. This change will kick-in overnight too – so good news for those of you who qualify for this relief.
The government will also put an extra £10bn into the help-to-buy scheme. The government expects this will help 135,000 more homebuyers.
While the planned rise for fuel duty in April has been cancelled for the eighth year in a row, the Chancellor announced rises for Vehicle Excise Duty (VED) from April 2018. The first year VED rate for diesel cars that don’t meet the latest standards will go up by one band. The levy will fund a new £220m Clean Air Fund to improve air quality in cities and towns across the UK.
The government will also increase investment for driverless vehicles, announcing plans for a new £400m charging infrastructure fund. The Chancellor committed to clarifying the law on benefit-in-kind tax for those who choose to charge their cars at work.
The Chancellor noted a freeze on alcohol duty for most ciders, wines, beers and spirits. However, high strength white ciders will be excluded from this duty freeze. And tobacco costs will continue to rise at inflation plus 2%.
We’ll bring you all the latest coverage as the day goes on, so check back for up-to-the-minute news.
Who is likely to benefit most?
In every Budget, there are winners and losers. While some groups will enjoy tax breaks and greater support, others are likely to see their bills creep up.
We called on the government to update on the delivery of the new pensions dashboard, which has been promised by spring 2019. While we didn’t see any mention of the pensions dashboard today’s Budget, we’ll anticipate an update on progress when the Minister for Pensions, Guy Opperman, presents on the project in the new year.
We’ll bring you all the latest coverage as the day goes on.
What do you think of the government’s latest Budget? And who do you think benefits most – and least – under the new plans?