The good news is, Pubs across Britain are rejoicing!! Hammond saves Brooze!! The bad news is if you own a Diesel car you may face a tax hike. Need a fag to calm your nerves? Well, tobacco, hiked!! The news isn’t all bad, as I said before Chancellor Philip Hammond froze the alcohol duty. The Booze industry tipples its hat to the chancellor.
Quick Summary of Hammond’s Budget
Diesel drivers whose cars don’t meet the latest standards will suffer tax hikes. The money raised will go to the chancellor’s “Clear Air Fund.” Hammond also abolished stamp duty on properties up to £300,000. Not a bad move for a country facing a potential housing crisis. He announced that at least £44bn of capital funding, loans, and guarantees over five years will support house-building. Delivering over 300,000 new homes a year. He promises that there will also be one million new homes built along the Cambridge-Milton Keynes corridor.
Hammond also froze Fuel duty. Tobacco duty is set to increase by 1%. He also referenced an increase duties on “white ciders” from 2019. The chancellor insists they’re going to raise the amount you earn before you pay tax, aka personal allowance. Minimum wage is to rise for over 25’s to 4.4% from April. In layman’s terms, for full-time workers, this will be a £600 pay increase. Finally, Universal Credit funding has been cut to five-week wait for first payment.
What does this all mean for Brexit?
To be honest, UK’s growth forecast looks very gloomy at the moment. Hammond announced £3billion for Brexit preparations over the next two years. Also in the Autumn Budget, he stressed that Britain should take advantage of Brexit.
To quote the chancellor in his own words,
“We must seize the opportunities of Brexit”
It all sounds really good but the truth is The Office for Budget Responsibility (OBR) forecast a dire economic future for Brits. Look at the numbers below, Britain’s economy is now expected to grow by just 1.7% in 2017, down from 2% in March.
Growth forecasts until 2022 are as follows:
2.0% in 2017 – now 1.5% – DOWN
1.6% in 2018 – now 1.4% – DOWN
1.7% in 2019 – now 1.3% – DOWN
1.9% in 2020 – now 1.3% – DOWN
2.0% in 2021 – now 1.5% – DOWN
In 2022 – now 1.6%
So what do you think?
Is Chancellor Hammond’s Autumn budget going to save Theresa May’s Brexit? And how will this impact your household? Tell us in the comments.