YOU and the Budget... what does it mean for the North East?
HOW NORTH MAY BE AFFECTED BY PLANS
CHANCELLOR Philip Hammond has delivered his annual Budget statement to the House of Commons.
He said that the “era of austerity is finally coming to an end” – but we’ll have to wait until next year before the Government reveals what that really means.
However, Mr Hammond made a number of announcements that will affect people in the North East.
■ Many people will be able to keep more of the money they earn.
The income tax threshold will increase to £12,500 in April 2019. In other words, you won’t pay any income tax at all until you earn this much.
Assuming you have an annual income of at least £12,500, you’ll probably pay £130 less tax a year.
And the threshold for the higher rate of income tax – the 40% rate – will increase to £50,000-a-year.
It means that some people on higher salaries (more than £46,351-a-year) will also gain.
■ And there will be a pay rise for some workers.
The “living wage”, the effective minimum wage for people aged 25 or over, will rise to £8.21 next April, up from £7.38 an hour now.
■ Fuel duty is frozen again.
In 2019, fuel duty will remain frozen for the ninth year in a row, saving the average driver £1,000 since 2010, according to the Treasury.
■ There’s some help for cashstrapped local councils struggling to pay for social care.
Local authorities in England will receive a further £650m in social care funding next year, shared between them.
■ And schools also get some extra cash.
The Chancellor announced £400m extra for schools this year.
This will be £10,000 for the average primary school and £50,000 for the average secondary school. ■ Potholes may get fixed.
Local authorities will receive £420m to fix potholes on roads and renew bridges and tunnels, and there will be a £150m to improve local traffic hotspots such as roundabouts. And a £28.8bn National Roads Fund, paid for by road tax, includes £25.3bn for the Strategic Road Network (motorways, trunk and A roads). The largest ever investment of this kind.
It will also help fund the new network of local roads (known as the Major Road Network), and larger local road projects.
■ There’s a promise that life will get a little easier for people on Universal Credit.
He announced an extra £1bn over five years to aid those moving to Universal Credit, and there will be help for people repaying debts.
The Chancellor also announced £1.7bn to increase existing work allowances in Universal Credit.
The work allowance is the amount you can earn before your benefits start to be reduced.
Increases to work allowances will mean working parents and people with disabilities claiming Universal Credit will be £630 better off each year, according to the Treasury.
■ Funding to develop plans for a new rail line in the North.
The Chancellor is providing an extra £37m to help develop plans for Northern Powerhouse rail – a new rail line running North East to North West across the Pennines, improving services to Newcastle and other North East cities and towns.
It’s being developed by Transport for the North, the local transport authority run by mayors and council leaders.
They are excited about the plans – but it will be decades before any new rail line is operating.
■ North East invited to bid for a share of transport funding.
The North East Combined Authority is one of 10 councils “shortlisted” for a share of £440 million in transport funding.
But it has to bid for the money. Meanwhile, areas with mayors are getting transport cash.
There’s £21m for Cambridgeshire and Peterborough, £69.5m for Greater Manchester, £38.5m for Liverpool City Region, £23m for West of England, £71.5m for the West Midlands, and £16.5m for Tees Valley.
It seems the Government is keen to splash the cash – if you have a mayor.
■ Help to regenerate the former SSI Redcar steelworks site
The Chancellor is to provide up to £14m of capital funding to drive growth and bring jobs to the former SSI Redcar steelworks site through the establishment of a “Special Economic Area”.