Budget 2018 Summary: Key Points At-a-glance

Philip Hammond has delivered his third Budget as chancellor. From a relief in personal tax measures to increase in the national living wage allowance and the budget to rejuvenate high streets, this is surely a treat from Philip Hammond for the UK peoples.

Key Points Of Budget 2018

Here are the key points of Philip Hammond’s 72-minute speech.

1. The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April - a year earlier than planned
2. The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April
3. National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.
4. All first-time buyers purchasing shared equity homes of up to £500,000 to be exempt from stamp duty
5. £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
6. Lettings relief limited to properties where the owner is in shared occupancy with the tenant
7. 2.4 million working families with children to benefit by £630 a year
8. Extra £500m for preparations for leaving the EU
9. An extra £160m for counter-terrorism police
10. New 2% digital services tax on UK revenues of big technology companies, from April 2020. Tech giants to face Digital Service Tax
11. Profitable companies with global sales of more than £500m will be liable
12. Annual investment allowance to be increased from £200,000 to £1m for two years
13. Contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
14. Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years
15. Measure to benefit 90% of independent shops, pubs and restaurants, cutting bills by £8,000
16. £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
17. Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020
18. Confirmation of an extra £20.5bn for the NHS over the next five years
19. A minimum extra £2bn a year for mental health services
20. A £30bn package for England's roads, including repairs to motorways and potholes
21. A new tax on plastic packaging which does not contain 30% recyclable material
22. No tax on takeaway coffee cups but to be reconsidered if the industry doesn't make enough progress

Conclusion

Overall, I would conclude that this is a Budget in preparation for a 2019 Election. The Chancellor should have been bold enough and provided much more for Brexit and rates reduction to rejuvenate the high street. I can see the Chancellor has met 2 major promises prior to the budget; the personal allowance increasing to £12,500 and that the basic rate threshold is increased to £50,000 which means tax savings of up to £1,130 in total for Basic Rate payers.