Key updates from Phillip Hammond's Spring Budget 2017. What’s in it for small businesses and startups? We’ve sat through the jeering so you don’t have to.
- The OBR has upgraded the forecast for growth this year from 1.4% to 2%
- Growth forecast for 2018 revised down from 1.7% to 1.6%
- Unemployment has fallen fastest in Yorkshire and Wales
- From April 2017 Corporation tax will fall to 19%, which is the lowest rate in the G20. In 2020 it will fall again to 17%
- There will be a reduction in the administrative burdens around R&D tax credit relief
- For businesses below the VAT threshold, quarterly reporting for small businesses will be delayed until 2018
- Any business coming out of small business rate relief will benefit from a cap – no business coming out from rate relief will see their rates increase by more than £50 a month for the first year
- A £1,000 discount on business rate bills for 90% of England’s pubs
- Local authorities to benefit from a £300m fund to help address business rates hardship
- All measures above will see a £435m cut in business rates in total
- National insurance for the self-employed will increase 1% to 10% in 2018
- From April 2018, the tax-free dividend allowance will be reduced from £5,000 to £2,000
- The National Living Wage will rise to £7.50 in April
- Personal allowance rate will rise for the seventh year to £11,500, and the higher rate threshold to £45,000
- £6bn a year to be committed to childcare – tax-free childcare to rise to 30 hours a week
- £300m allocated to support the brightest research talent in STEM and technology
- £90m to the North and £20m to the Midlands to invest in infrastructure
- £200m allocated to the Welsh government, £350 to the Scottish government, and £120 for the incoming Northern Irish Executive.
- New T-levels to be introduced, providing qualifications for technical education
- 3m new apprenticeships to be supported by 2020
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