Spring Budget 2017
9 March 2017
Chancellor Philip Hammond described his first and last Spring Budget as one that “takes forward our plan to prepare Britain for a brighter future”.
The economic forecasts outlined by the Office for Budget Responsibility (OBR) were broadly in line with those from the Autumn Statement in November 2016.
Inflation is forecast at 2.4% in 2017, 2.3% next year and 2% in 2019.
Growth is predicted to be 2% in 2017 (up from 1.4% forecast at Autumn Statement 2016) and 1.6% in 2018.
Borrowing in 2016/17 is forecast to be £51.7 billion (£16.4 billion lower than in the autumn) and public sector net borrowing is predicted to fall from 3.8% of GDP in 2016 to 2.6% this year.
Spring Budget 2017 was light on new measures with very few new announcements that will come into effect for the 2017/18 tax year.
The Chancellor confirmed that from April 2017:
- the national living wage will be £7.50 an hour
- personal allowance will increase to £11,500 and the higher rate threshold to £45,000 (£43,000 in Scotland)
- a new NS&I bond paying 2.2% on deposits up to £3,000.
The following report summarises the announcements made by Chancellor Philip Hammond during Spring Budget 2017 on 8 March 2017.
At a glance
Making tax digital
Quarterly reporting delayed by one year for businesses with turnover below VAT threshold
New qualification for technical education
R&D tax credits
Measures to lower administrative burden to be introduced
Cap in bills for firms coming off small business rate relief in England
Class 4 NICs to rise to 10% in April 2018 and 11% in April 2019
Tax-free dividend allowance to reduce to £2,000 from April 2018
£1,000 business rate discount in England
Measures against converting capital losses to trading losses
Soft drinks levy
18p rate for main band and 24p for higher band
Feel free to download a copy of our more comprehensive Autumn Statement publication by clicking on the image below: