With 2017, finally reaching it’s near; UK Chancellor Philip Hammond unveiled the latest fiscal budget also known as the Autumn Budget. Tipsters are already calling it as one of the most intricate budgets, particularly set against the backdrop of plummeting living standards, substandard growth and weak Brexit.
Primary Focus Areas of the Autumn Budget:
The Autumn Budget was dispatched over to the House of Commons previous week with focus mainly being on Public Welfare, Taxation and Housing.
In lieu to these areas, Hammond also focussed on Business ventures, Digital arcades and also rendering support to the FinTech Industry which was encapsulated in the ’Spring Budget earlier.
Render of a man with a magnifying glass looking to the text VAT
Furthermore, with this Autumn Budget, the UK Chancellor also ousted the HM Treasury Patient Capital Review Response.
“The HM Treasury Patient Capital Review Focuses On Consolidating the Financial Services via Open Banking.”
That was just not it. ‘Innovative Finance’ opined that the report incorporated details about investment in digital aptitudes and new-gen technology. Plus, mentioning of efficacious support needed for formulating modernistic industrial stratagems were also present.
Unlocking Of a 10 Year Action Plan:
This latest budget brings forth a 10 Year Action Plan Which Has the Potential to unlock £20 Billion primarily for financial modernization. Here’s a gestalt on this:
A £2.5 Billion Investment incubating in the British Business Bank (BBB) is established with intention of floating or selling once it has reached its satiating limit. Moreover, there are plans to co-invest a sum total of £ 7.5 Billion investment fund with private sectors.
Using VCTs – Venture Capital Trusts and EIS- Enterprise Investment Scheme to augment support of Innovation Knowledge companies! With it, plans are also to introduce a scheme for redirecting low risk investments and boost firm growth with an unlocking of £7 Billion.
Presenting adequate backing (£1.5 Billion to be precise) for new and emerging fund managers with BBB’s Capital Fund Plan.
Giving support to overseas investment using BBB’s Enterprise Capital Fund Programme which incorporates a sum of £1 Billion Investment!
Lastly, the Budget also includes introducing a National Security Investment of £85 Million for bettering National Security.
Highlights of the Autumn Budget
Starting off with National Infrastructure- Science- Transportation:
According to the Autumn Budget, around £320 Million will be down poured for Redcar Steel operations. Around £1.7 Billion will focus on transportation and will be distributed between 6 regions having specific Mayors and also in its whereabouts. Around £30 Million will be used to enhance TransPennine rail route mobility and digital connection.
Other than these – Funds in amount of £2 Billion, £1.2 Billion and £650 Billion will be distributed between the Scottish, the Welsh and North Ireland Governments respectively.
– Scottish Fire and Police Agencies will receive VAT refunds (effective from April 2018).
– Railway cards extended from 26-30 years are entitled to receive 1/3rd deductions on their rail fares.
Shifting over to Wellbeing and Education:
For all underperforming schools in England, the govt will allot around £40 Million for teacher training. Breaking it down further, there will be funds of around £1000 for each teacher.
6th Form Colleges (*) and Secondary schools will all receive £600 for every apprentice choosing Mathematics as their subject. Also, those choosing A-Level or core Mathematics will receive £177 Million.
(*): (6th Form Colleges are educational grounds where pupils between 16 – 19 yrs study for advanced educational qualifications. BTEC and GCSE exams include.)
England NHS will also receive around £2.8 Billion as funds for advancements and £10 Billion funds will be presented to Hospitals and medical institutes till 2022.
Recruitment of top-notch Computer Science Educators will also be taking place emphatically. As per sources, around 8,000 new teachers will be recruitment. Words also circulate about a new National Computer Centre to be set up. For all these undertakings a capital of around £84 Million will be spared as funds.
Digital Business Venture:
Growth of electric cars will accentuate with £540 Million. For 5G network support, complete fibre broadband and implementation of AI- (Artificial Intelligence) £500 million will be the monetary aid from the govt. In the field of R&D (research and development) £2.3 Billion will be the funding spared.
For novices wanting to enter into the world of digital business venture, the government keeps a £30 Million fund in its arsenal. This is for developing learning courses focussing on digital skills.
Housing and Stamp Duty:
Around 95% of 1st time buyers will receive the benefit of not paying 80% of stamp duty. To continue, for properties over £300,000 all stamp duties will be abolished.
However, for properties worth £500,000 stamp duty will be exempted for the 1st £300,000. For the remainder 5% of Stamp Duty will levy.
As per the budget, the government will also allow £400 Million to for regenerating house estates and around £1.1 Billion to disengage development stratagems for housing sites. He councils have been given the power to impose 100% council tax premiums for all vacant properties.
(These rules will become effective immediately in England and probably in 2018 for Wales, Northern Ireland and Welsh government)
Tobacco, Alcohol and Fuel
As per RPI- Retail Price Index, tobacco prices will continue its upsurge (this time by 2%). Tobacco will also see a 1% increase in Duty. As for Fuel (Petrol and Diesel), Duty will rise but it is scheduled to take place in April 2018.
All vehicle Excise duty registered before 2017 April will see an increase. This tax hike, however it not applicable to van owners!
A massive £220 Million funding is set aside for disinfecting and lessening pollution in England hot zones.
Pensions for Old-timers and Taxation Rules:
Pension: The rule of – ‘Waiting for 7 Days for Processing’ is to be scrapped. Rather the revised rules are that claimants will receive their pension payments within 5 days of application. (Rules levy from January 2019).
The usual 1st payment will take 5 weeks and NOT SIX as per the new rules. If that is good, then the repayment period being increased from 12 months to its previous 6 makes it even better.
Taxation Rules: Tax threshold will surge to £46,350 and National Living Wage will increase by 4.4%. Rummaging into specifics, it will increase from the exiting £7.50/hour to £7.83/hour.
Lastly the Economic Forecast:
As per forecasts for 2018- 2021, the economy of the UK will be something like 1.4%/1.3%/1.5% and 1.6% respectively.
Around £3 Billion will be set aside for the following next 2 years for upgrading UK in every possible manner. Plus the speculation for 2022 reveals that around 600,000 people will; start working. Other reports also reveal that the Consumer Price Index Inflation will fall by 1% (3% to 2%) by the completion of 2018.
These include as some of the chief highlights of the UK Budget 2017. It is pretty clear that the obligation for Hammond is UK’s up-gradation. So, far, there have been mixed reactions concerning the budget! However, only with the tick of time, it will get clear as to how aptly it will works in country’s favour.