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Spring Statement 2018

14th March 2018

Yesterday Philip Hammond delivered his first Spring Statement. Here are some of the key points from the statement:

Economy

  • Forecast GDP growth has increased from 1.4% to 1.5% for 2018.
  • Unemployment rate is approaching a forty year low.
  • Forecast borrowing for 17/18 is expected to be £45.2bn, revised down from the previous forecast of £49.9bn.
  • National Debt is expected to fall as a share of GDP in 2019-20, a year later than previously forecast.

Businesses

  • The next business rates revaluation is to be brought forward from 2022 to 2021. Revaluations will take place every 3 years rather than every 5 years going forward.
  • The government will be reviewing the tax system to ensure multinational digital businesses pay their fair share of tax.

Houses

  • The Housing Growth Partnership, which provides support to small housebuilders is to be doubled to £220m.
  • The new Stamp Duty thresholds announced in the Autumn budget are estimated to have helped 60,000 first time buyers get on the property ladder.
  • The West Midlands have reached a deal with the Government for 215,000 new homes by 2030-31.

Other

  • Plastic Waste - Philip Hammond stated that they will be reviewing the tax system to assess how it can help in reducing the amount of plastic waste.
  • Air quality - There will be a review of the vehicle excise duty for vans.
  • VAT – Government will review the VAT collection method for online sales, to ensure this money reaches the Treasury.