Budget 2018: How It Will Affect You

29 October 2018, 16:43 | Updated: 29 October 2018, 17:25

Philip Hammond holds up the Budget Red Box in Downing Street
Philip Hammond holds up the Budget Red Box in Downing Street. Picture: PA

Chancellor Philip Hammond has delivered the last Budget before Brexit. This is everything you need to know, including what was announced and how it will affect your life.

Extra Cash For The NHS

The Chancellor confirmed a £20.5bn real terms increase for the NHS over the next five years.

The NHS 10-Year Plan will include a new mental health crisis service, with comprehensive mental health support available in every major A&E, children and young peoples' crisis teams in every part of the country, more mental health ambulances, more "safe havens" in the community and a 24-hour mental health crisis hotline.

Potholes

An extra £420m is being made available immediately to tackle potholes, bridge repairs and other minor works in this financial year.

Schools

The Chancellor announced a £400m in-year bonus to help schools buy kit - a one-off capital payment direct to schools worth an average of £10,000 per primary and £50,000 per secondary.

Philip Hammond
Picture: PA

Stamp Duty

Stamp Duty abolished for all first-time buyers of shared ownership properties valued up to £500,000, applied retrospectively to the date of the last Budget.

Fuel Duty

Fuel duties frozen for the ninth successive year, bringing the total saving to the average car driver to more than £1,000 and to the average van driver to over £2,500.

Alcohol And Tobacco Duty

The chancellor announced duty on beer, cider and spirits will be frozen for the next year.

You'll save 2p on a pint of beer, 1p on a pint of cider, and 30p on a bottle of Scotch or gin compared to the inflation assumption in the OBR forecast.

Duties on wine to rise in line with RPI inflation and white ciders to be taxed at a new higher rate.

Tobacco duty escalator to continue to rise at inflation plus 2%.

Duty on beer, cider and spirits frozen for the next year
Duty on beer, cider and spirits frozen for the next year. Picture: PA

Universal Credit

A £1 billion package of measures announced over five years to support Universal Credit.

The Chancellor said he was increasing work allowances in Universal Credit by £1,000 a year at a cost of £1.7bn annually, helping 2.4m working families with children and people with disabilities by £630 per-year.

National Living Wage

From April 2019, the National Living Wage will rise by 4.9%, from £7.83 to £8.21 an hour.

Income Tax

Income tax-free personal allowance to rise to £12,500 and higher rate threshold to £50,000 from April 2019.

Mr Hammond said the income tax threshold changes would amount to a tax cut for 32m people, putting £130 a year in the pocket of a typical basic rate taxpayer meaning 1.7m have been out of tax altogether and nearly 1m out of higher rate tax since 2015.

Comments

Loading...