Budget 2018: All the key points as they are announced

The key announcements from Chancellor Philip Hammond:

:: Income Tax: To raise the personal allowance to £12,500 and the higher rate threshold to £50,000 from April 2019 “one year early”. “A tax cut for 32 million people, £130 in the pocket of a typical basic rate taxpayer”. “Austerity is coming to an end but discipline will remain”.

:: From April the National Living Wage will rise again, by 4.9%, from £7.83 to £8.21.

:: Universal Credit “here to stay” but will get additional package of £1bn over five years for new protections for claimants. Increases work allowances by £1,000 per year to “benefit 2.4 million working-families-with-children and people with disabilities by £630 per year”.

:: Fuel duty frozen for ninth successive year. Tobacco duty escalator to continue to rise at inflation plus 2%. Beer, cider and spirits duties frozen. Duty on wine to continue to rise in line with RPI inflation.

:: Battle against plastic in our oceans to be supported by new tax on on the manufacture and import of plastic packaging which contains less than 30% recycled plastic.

:: “Decisions announced in this Budget means out to 20-21 an additional £950m for the Scottish government; £550m for the Welsh government and £320m for a Northern Ireland Executive.

:: Stamp Duty is abolished for all first-time buyers of shared ownership properties valued up to #500,000. This will be applied retrospectively to the date of the last Budget. A further £500m will go to the Housing Infrastructure Fund.

:: A new mandatory business rates relief for all public lavatories – “so that local authorities can, at last, relieve themselves.”

:: For the next two years, all retailers in England with rateable value of £51,000 or less will have business rates bill cut by a third.

:: “High street under pressure as never before” with support from £675m in co-funding for a Future High Streets Fund to help councils transform town centres.

:: UK to introduce Digital Services Tax from April 2020. Expected to raise £400m annually. DST would only be paid by companies which are profitable and which generate at least £500m a year in global revenues. DST could be axed if OECD agrees international formula.

:: For smaller firms taking on apprentices, Apprenticeship Levy will be slashed in half.

:: Support for business includes opening the use of e-passport gates at Heathrow and other airports to include visitors from the US, Canada, New Zealand, Australia and Japan. £200m more funding to the British Business Bank.

:: Package of measures to stimulate business investment and signal “Britain is open to business” with increase to Annual Investment Allowance, from £200,000 to £1m for two years.

:: “We will honour” existing Private Finance Initiative contracts with new centre to manage costs. Government to abolish use of PFI in future.

:: Commitment to tech with £1.6bn of new investments “to support our modern industrial strategy”.

:: Local authorities’ battle against potholes to get £420m “made available immediately”.

:: School budgets to be boosted by £400m one-off bonus to help get kit they need.

:: Air ambulance services (funded by charity) to get £10m.

:: £10m to go to the Armed Forces Covenant Fund Trust “to support veterans with mental health needs”.

:: £160m more to go to police counter terrorism battle in next financial year.

:: Additional £1bn for Ministry of Defence to be spent this year and next to help battle against cyber warfare and support submarine programme.

:: Local authorities in England to get extra £650m of grant funding for 2019/20 to bolster social care.

:: “We are delivering historic £20.5bn real terms increase for the NHS in full over the next five years.” NHS 10-year plan will include new mental health crisis service including specialist ambulances and hotline.

:: “We meet our target to get debt falling 3 years early. “Fiscal Phil says: Fiscal Rules OK.”

:: OBR: “Borrowing this year will be £11.6bn lower than forecast at the Spring Statement”, falling from £31.8bn in 2019/20 to £26.7bn in 2020-21, £23.8bn in ’21’-’22’, £20.8bn in ’22-’23’, and £19.8bn in 2023-24, “its lowest level in over 20 years.”

:: Office for Budget Responsibility (OBR) upgrades forecast for GDP growth in 2019 from 1.3% to 1.6%, then 1.4% in 2020 and 2021; 1.5% in 2022; and 1.6% in 2023.

:: Allocates extra £500m to government departments for “no deal” Brexit preparations.

:: Hammond says if UK gets it right in Brexit talks UK will “harvest a double Deal Dividend” – A boost from the end of uncertainty and a boost from “fiscal headroom” being held in reserve.

:: “The era of austerity is finally coming to an end”.

:: “Today, I present to the House a Budget for Britain’s future; A budget that shows the perseverance of the British people finally paying off.”

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(c) Sky News 2018: Budget 2018: All the key points as they are announced