Key Points to the Spring Budget 2017

Thursday, March 9, 2017

Philip Hammond delivered his first Budget as Chancellor, yesterday.

Here are the key points:

  • Personal tax allowance will increase to £11,500 as planned and to £12,500 by 2020
  • As outlined in Autumn Statement 2016, corporation tax will be cut to 19 per cent from April this year and 17 per cent in 2020.
  • £435m for firms affected by business rates revaluations, including £300m hardship fund for small businesses who have taken the worst hit.
  • Making Tax Digital for unincorporated businesses and landlords with turnovers below the VAT threshold will be delayed until April 2019.
  • The main rate of Class 4 National Insurance contributions for the self-employed to increase from 9% to 10% in April 2018 and 11% in April 2019. Taken with the abolition of Class 2 NICs, Treasury say these changes will affect self-employed individuals with profits above £16,250.
  • Reduce dividend tax-free allowance from £5,000 to £2,000 from April 2018

On the Economy, Philip Hammond announced:

  • The UK was the second fastest growing economy in the G7 during 2016
  • Growth forecast for 2017 upgraded from 1.4% to 2%
  • However GDP has been downgraded to 1.6%, 1.7%, 1.9% in subsequent years, then 2% in 2021-22
  • Annual rate of inflation is forecasted to rise from 2.3% to 2.4% in 2017-18 before falling to 2.3% and 2.0% in subsequent years
  • A further 650,000 people expected to be in employment by 2021

The Chancellor also recognised the need to increase the UK’s productivity and skill set and has committed himself to supporting:

  • Technical education – £500 Million for the creation of ‘T-levels’, in an effort to bring technical education in line with academic qualifications.
  • Return to work support – £5million for ‘returnships’ to get more people back into work after lengthy careers breaks.
  • Lifelong learning pilots – £40 million to help retrain and upskill the UK’s workforce, a key commitment in the government’s industrial strategy.

 

Working from offices in Stoke-on-Trent, Cream Personnel Services is a name that is synonymous with recruitment in North Staffordshire and South Cheshire. Established in 1973 we have become the first choice Recruitment Agency for job seekers and employers throughout the region.

To contact the Cream Team about recruitment send an e-mail to: stoke@creampersonnel.co.uk  or call: 01782 262731.