‘Budget will pave the way for a brighter future’
CHANCELLOR DELIVERS SPEECH FOR ‘THE STRIVERS, THE GRAFTERS AND THE CARERS’
Tax on beer, cider and spirits will be frozen for the next year – but the price of a packet of cigarettes will continue to rise.
Chancellor Philip Hammond’s Budget speech saw duty on beer, cider and spirits frozen for the next year, saving 2p on a pint of beer, 1p on a pint of cider, and 30p on a bottle of Scotch or gin.
But tax on wine will rise in line with inflation, while strong white ciders will be taxed at a new higher rate, and the tax on tobacco will continue to rise at two percent above inflation.
Tax on petrol and diesel will be frozen for the ninth successive year, while the amount workers are allowed to earn before paying income tax will rise to £12,500 and the higher rate threshold to £50,000 from April , with both to be linked to inflation from 2021/22.
Mr Hammond said the income tax threshold changes would amount to a tax cut for 32million people, putting £130 a year in the pocket of a typical basic rate taxpayer, meaning 1.7million have been out of tax altogether and nearly one million out of higher rate tax since 2015.
From April 2019, the National Living Wage will rise by 4.9%, from £7.83 to £8.21 an hour. The chancellor also announced a tax on the manufacture and import of plastic packaging which contains less than 30% recycled plastic.
He told MPs that “austerity is finally coming to an end” as he hailed a significant improvement in public finances.
The Chancellor said the Office for Budget Responsibility expected “resilient” growth over the coming years.
Announcements for the North East included:
A £90million “Future Mobility Zones” fund available for areas to trial revolutionary new transport, including self-driving shuttles, digital payments and e-bikes;
Up to £37million to support the development of Northern Powerhouse Rail to connect cities across the North with faster, more frequent services;
£1 million across the country to improve access to flood information, including an expansion to the flood warning system to an additional 1,600 at-risk properties in the North East.
In the final scheduled Budget before Brexit, Mr Hammond announced am extra £500million for preparations.
And he hinted that an emergency Budget could take place in the spring.
Mr Hammond said his Budget was aimed at helping “the strivers, the grafters and the carers” and would pave the way for a “brighter future.”
On Brexit, he said the UK was reaching a “pivotal moment” in the negotiations and said that a “deal dividend” would provide a boost to the economy if an agreement with Brussels could be reached.