The Autumn Budget 2018 Round Up
On Monday 29th October, Philip Hammond delivered his third budget as chancellor. Here are the key takeaways from his 72-minute speech concerning personal finances and housing - some of our core focuses here at The Nottingham.
Personal Taxation & Wages
- The basic rate of income tax will change in April 2019, to £12,500 instead of £11,850 and the first £12,500 of earnings will then be free from income tax.
- The higher rate of tax, where people start to pay tax at 40%, currently starts at £46,350 and will rise to £50,000. Both of these pledges are 12 months earlier than previously promised and will be a boost in take home earnings.
- The National Living Wage is increasing in April 2019 by 4.9%, from £7.38 to £8.21 an hour.
- Wages growth is at its highest in nearly a decade.
- The Help-To-Buy scheme will be extended by two years and now end in 2023.
- Most first-time buyers of Shared Ownership homes will no longer pay Stamp Duty on a house up to £500,000. In last year’s Autumn Budget, Stamp Duty was abolished for first time buyers buying a home worth up to £300,000 so this is a further addition to help people get on the property ladder.
- The number of first time buyers is at an 11-year high but the number of homes on the market is at a 10-year low.
- A £675m fund to help councils turn unused high street shops or commercial buildings into homes. There could be up to 400,000 new homes to be created by making use of empty shops.
- 650,000 more homes to potentially be built with extra £500m for the Housing Infrastructure Fund.
Other notable outcomes
- The 26-30 railcard to be available across the UK by the end of the year.
- Business rates to be cut by a third for smaller shops, pubs, restaurants and cafes, which is good news for small businesses and independents. Our high street should see less boarded up shops and more activity also due to the £650m budget to rejuvenate them.
- Beer, spirits and cider tax has been frozen but tobacco tax will continue to rise with inflation plus 2%.
- A new tax on plastic packaging which does not contain 30% recyclable material will be enforced.