How with the Budget affect you?
The Chancellor, Philip Hammond announced his plans for the Budget today but what are the pros and cons and how will it affect you?
- Help for savers, Guaranteed Growth Bonds will be offered by National Savings and Investments, starting from April, paying an interest of 2.2 per cent.
- £435m for firms affected by increases in business rates, including £300m hardship fund for worst hit.
- Rate rises for businesses losing existing relief will be capped at £50 a month.
- Review of taxation of North Sea oil producers
- A further 650,000 people expected to be in employment by 2021
- The National insurance contribution paid by those who are self-employed will rise over the next few years. It will increase from nine per cent to 10 per cent in April 2018. It will then rise further in April 2019 to 11 per cent for those making a profit of more than £8,060.
- Annual rate of inflation forecast to rise from 2.3% to 2.4% in 2017-18 before falling to 2.3% and 2.0% in subsequent years.
- Borrowing still predicted to be £100bn higher by 2020 than forecast in March 2016.
- Company directors and private shareholders will have their tax-free allowance on dividends cut from £5,000 to £2,000 from April 2018.