All key Budget 2018 announcements at a glance – as Universal Credit gets cash

Chancellor Philip Hammond has banned PFI deals, mounted a screeching Universal Credit U-turn and launched a new £400m tax on Google and Facebook in Britain’s final Budget before leaving the EU.

The Tory minister claimed the "era of austerity" was ending as he promised £2bn a year extra for mental health by 2024, 10million trees, cash for roads and a pilot scheme to offer low-cost loans to the poor.

Universal Credit claimants will get an extra £1.7billion a year in higher work allowances by 2023 in a partial victory for the Mirror.

Meanwhile beer, cider, petrol and spirits duties are all frozen – though taxes on cigarettes and wine are going up at 6pm.

The Income Tax personal allowance and 40p rate are rising to a Tory manifesto pledge a year earlier than planned. Stamp duty will be scrapped for more first time buyers and the minimum wage is going up to £8.21 for over-25s.

But Jeremy Corbyn warned it was a “broken promise budget” with “half-measures and quick fixes while austerity grinds on” – as women denied their pensions protested furiously in the public gallery.

So what’s actually in the Budget, and how will it affect you? Here is a summary of everything announced today.

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Budget 2018

  • All Budget 2018 measures at a glance
  • Budget 2018 live updates
  • Screeching Universal Credit U-turn
  • New tax for Google and Facebook
  • What the Budget means for you
  • Budget interrupted by pension protest
  • Cigarettes rise by 49p a pack
  • Philip Hammond’s speech in full

Tax

  • Income Tax personal allowance (the amount all workers get tax-free) to rise from £11,850 to £12,500 in April 2019
  • 40p Income Tax threshold to rise from £46,350 to £50,000 in April 2019, helping the richest 13%
  • New Digital Services Tax on web giants who make more than £500m globally from April 2020, raising £400m a year

Wages

  • National Living Wage (minimum wage for over-25s) to rise from £7.83 to £8.21 in April 2019
  • Minimum wage aged 21-24 to rise from £7.38 to £7.70
  • Minimum wage aged 18-20 to rise from £5.90 to £6.15
  • Minimum wage aged 16-17 to rise from £4.20 to £4.35
  • Apprentice wages to rise from £3.70 to £3.90

Benefits

  • Huge Universal Credit climbdown as "work allowance" – the amount you can earn before benefits taper away – rises by £1,000 a year, costing £1.7bn a year once rolled out
  • Another £1bn over five years to help people transition when they are moved on to Universal Credit
  • Benefits remain frozen for four years to 2019/20, cutting almost £4billion a year from the benefits bill

NHS and social care

  • £2bn a year extra for mental health by 2023/24 with "crisis cafes", specially-equipped ambulances, devoted school teams and guaranteed A&E support
  • ALL future PFI deals will be banned – stopping hospitals from taking on huge new building debts. But current ones won’t be scrapped, something Jeremy Corbyn wants to do
  • £10m will be made available to air ambulances to help them keep flying
  • £650m extra social care funding for English councils for 2019/20

  • Disabled Facilities Grant gets another £45m in 2018/19

  • Children’s social care programmes get another £84m over five years to expand programmes to 20 further councils

Housing

  • Stamp duty axed for more first time buyers, extending to all buyers of shared ownership homes under £500,000- and applied retrospectively to the 2017 Budget

Brexit

  • Budget will have to be held again in a No Deal Brexit – yet No10 insists today’s commitments are funded "irrespective of a Brexit deal"
  • Brexit No Deal planning fund increased from £1.5bn this year to £2bn

Education

  • £400m in-year bonus to help schools “buy the little extras they need” – averaging just £10k per primary, £50k per secondary. And it can’t even be spent on whatever they need it for

Armed Forces and police

  • Another £1bn to MOD to cover the remainder of this year
  • £10m to the Armed Forces Covenant Fund Trust to support veterans with mental health needs
  • £160m of counter-terror police funding in 2019/20 “to protect numbers”

  • But no extra money for general police yet and no admission problems caused by Tory cuts

Cigarettes and alcohol

  • Fuel duty will be frozen for the ninth year in a row

  • Tobacco duty will continue to rise at inflation plus 2%

  • Beer and cider duty FROZEN for the next year saving 2p on a pint of beer

  • Spirits duty FROZEN too saving 30p on a bottle of Scotch or gin

  • But wine duty WILL increase at the inflation rate

Vehicles and petrol

  • Fuel duty is frozen for ninth year in a row, costing Treasury a cumulative £9billion a year
  • Vehicle tax will be entirely spent on roads for the first time, allowing major highways to access a £28.8bn fund from 2020 to 2025

Regions

  • Funding 10 university enterprise zones
  • £115m for digital catapults in the North East, Northern Ireland, South East and the Medicines Discovery Catapult in Alderley Edge
  • £70m to develop Nationak Rehabilitation Centre near Loughborough
  • £37m for Northern Powerhouse Rail
  • £10m to help self-employed get new skills in Manchester
  • £150m for Tay Cities, £350m for Belfast and £120m for North Wales city deals
  • New special economic area in South Tees
  • £20m to further develop rail line between Oxford and Cambridge
  • That all means in 2021, an extra £950m for Scottish government, £550m for Welsh government, £320m for Northern Ireland.

Transport

  • A pothole-filling fund worth £420m will be handed to councils
  • Transforming Cities Fund, which funds bus routes, trams and cycle lanes, will be extended with £680m in 2022/23
  • Gridlocked junctions will get £150m improvements over two years from 2021

  • Self-driving shuttles and electric bikes get £90m for trials over 3 years from 2019

Business

  • Business rates will be eased with £900m of ‘relief’ for 496,000 small retailers
  • This means all retailers in England with a rateable value of £51,000 or less will have their business rates cut by a third

  • High streets will get a £650m infrastructure fund over four years to save them
  • Planning laws will be relaxed to turn empty shops into offices and homes
  • Wedding rules will be shaken up to allow more pubs to be used as venues – in theory making ceremonies cheaper
  • Small business VAT thresholds will NOT be changed for two years after heavy lobbying by industry
  • Employment allowance will only be allowed for businesses with an employer national insurance bill under £100,000 a year from April 2020
  • Apprenticeship levy contribution reduced for smaller firms from 10% to 5% after complaints
  • Increasing annual investment allowance from £200,000 to £1million for two years.

  • Targeted relief for the cost of acquiring IP rich businesses.

  • Introducing a permanent tax relief for new, non-residential structures and buildings

  • UKEF’s direct lending facilities increased by up to £2bn

  • Visitors from the US, Canada, Australia, New Zealand and Japan will be able to use e-passport gates at UK airports

  • There will be £200m to the British Business Bank to replace access to the European Investment Fund “if needed” after Brexit.

Environment

  • 10 million trees to be planted across England costing £60m – £50m of which will go to landowners to buy their ‘carbon credits’

  • Public toilets to get guaranteed business rates relief to stop them closing

And finally, the numbers

GDP growth (%)

Year / prediction at Budget 2017 / prediction today

2019 1.3 1.6 – UP

2020 1.3 1.4 – UP

2021 1.5 1.4 – DOWN

2022 1.6 1.5 – DOWN

2023 N/A 1.6

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