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Autumn Budget 2018

By Wesleyan

Autumn Budget 2018


Introduction

With exactly five months to go until the UK is scheduled to leave the EU, Chancellor Philip Hammond has set out his autumn statement.

We highlight some of the key announcements that may affect you.

Taxes and pay

The Chancellor announced that the Personal Allowance would increase from £11,850 to £12,500 in April 2019 - delivering the Conservative Party's manifesto commitments one year earlier than planned. Additionally, the higher rate tax threshold will increase to £50,000 in England.

Both measures will be indexed against inflation from 2021/22.

The National Living Wage will increase to £8.21 per hour in April 2019 - representing an average £690 annual pay increase.

Pensions and savings

The pension Lifetime Allowance will increase in line with the Consumer Price Index of 2.4% to £1,055,000.

The Junior ISA annual subscription limit will also increase in line with the Consumer Price index to £4,368, in the 2019/20 tax year. Subscription limits for ISAs will remain unchanged at £20,000 per annum.

Stamp duty and housing

All first time buyers of shared ownership properties in England and Northern Ireland (with a value of up to £500,000) will benefit from the removal of stamp duty. This will be applied retrospectively to anybody purchasing such a property since the last budget on 22 November 2017.

£500m was announced for the Housing Infrastructure Fund, to help build 650,000 homes.

Education

The Chancellor announced that 86% of schools are now rated by Ofsted as 'good' or 'outstanding'.

He confirmed a £400m one-off capital payment for 2018, to help schools. This is worth an average of £10,000 per primary and £50,000 per secondary school.

Health and social care

At the Conservative Party Conference in October, Theresa May announced that by 2023/24 the NHS England budget would increase by £20bn in real terms. The Chancellor pledged a £20.5bn real terms increase for the NHS in England over next five years.

The NHS will produce a 10-year plan detailing how services will be reformed and waste reduced. This will be published shortly and will include a mental health crisis service available in every major A&E department, and children and young people's crisis teams in every part of the country.

In March 2017 £2bn of additional grant funding for social care in England was announced for the next three years.

In the Autumn Budget, the Chancellor announced £650m grant funding for English authorities in 2019/20 to spend on social care, with an additional £45m for the disabled facilities grant in England in 2018/19.

£84m was pledged over the next five years to expand children's social care programmes (for up to 20 local authorities) helping more children to stay at home safely.

£10m was pledged to support the work of the Air Ambulance Service in England.

Business

The VAT threshold of £85,000 will remain unchanged for the next two years.

It was confirmed that there will be a third off business rates, over the next two years, for SMEs with a rateable business value of £51,000 or less.

Annual Investment Allowance will be increased from £200,000 to £1m for the next two years.

Transport

In October, Theresa May announced a freeze on fuel duty for the ninth year in a row. This was confirmed by the Chancellor in the Autumn Budget and represents a £1,000 saving for the average car driver.

£420m will be made available to the Local Highways Authority in England in 2018/19 to tackle issues such as potholes and other minor repairs.

Managing your finances

If you would like to discuss any aspect of your finances with a Wesleyan Financial Services, Financial Consultant, call us today on 0800 980 6348 (quoting reference 1000900) or email financialreview@wesleyan.co.uk

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