Budget brief: What to expect from the Chancellor
Written by News on 08/03/2017
The final spring Budget is expected to be a low-key affair, with the Chancellor saving the big announcements for later in the year.
There is much we already know: Mr Hammond is saving for the rainy day that could be Brexit. He also wants to tool up the nation for leaving the EU – and Theresa May wants some grammar schools.
Here’s what we expect.
:: NHS and social care
A £1.3bn cash injection is expected amid an NHS crisis exacerbated by problems caring for the elderly and disabled in their own homes.
It is estimated there will be a £2.6bn blackhole in the social care budget by 2020.
The extra money is a sticking plaster and a long-term review of social care is expected to be announced.
Labour has called for £12bn to be ploughed into the NHS.
:: Cigarettes and alcohol
Look for increases in cigarette and alcohol duty. The cheapest packet of cigarettes is forecast to increase to £8.68.
:: Brexit
The Chancellor is building a £60bn Brexit fighting fund/war chest/safety net. Economists expected him to announce a £45bn windfall over the next five years from tax receipts.
Mr Hammond says he is stashing this away – not spending it.
:: Education
A £500m education boost for 140 new free schools, including a new generation of grammar schools, and for refurbishing existing schools.
There is also expected to be £500m for technical education, introducing ‘T-levels’ to provide skills that businesses say are currently lacking and to prepare for Brexit needs.
It is billed by the Government as the biggest shake-up of over-16s education in 70 years.
:: Technology
Another half a billion is destined for high-tech investment: for trailblazers in the areas of artificial intelligence and robotics, and for the roll out of super-fast 5G mobile phone services.
:: Growth
Economists expected 2017 growth to be revised from 1.4% to 1.9%.
:: Taxes
The Chancellor cannot raise income tax, VAT or national insurance contributions because of pledges in the manifesto.
Instead, it has been suggested Mr Hammond might increase National Insurance contributions for the self-employed by 3p in the pound to bring them in line with those paid by employees at 12%.
:: Property
There is pressure on the Chancellor to shake up stamp duty, which has failed to keep pace with the increase in property prices.
Also some property experts have suggested there could be some "bells and whistles" on existing help for first-time buyers.
:: Business
The Chancellor has promised measures to help those firms hardest hit by the first review of business rates in seven years, which has left some facing increases of 400%.
There are significant concerns high street shops and pubs face closure, while internet giants such as Amazon with big out-of-town warehouses benefit from cheaper rates.
:: Petrol
Petrol prices have risen sharply since this time last year and it is expected that the fuel duty freeze will continue.
However, the Chancellor is understood to have been mulling the idea of incentivising drivers to get rid of highly polluting diesel vehicles.
:: Netflix and Phil?
There could be a crackdown on small print being used to mislead customers.
Also an end to deals where customers are offered a free trial, asked for their payment details and then fail to cancel in appropriate time and get billed, as used by the likes of Amazon and Netflix.
:: Watch full coverage of the Chancellor’s first Budget on Sky News from 10am
(c) Sky News 2017: Budget brief: What to expect from the Chancellor