Effect on the Economy
Economy predicted to grow by 1.1% this year, revised down from 1.4% a year ago. This represents the slowest growth since 2009
]Inflation forecast at 1.4% this year, increasing to 1.8% in 2021-2022
Government to borrow £14.6bn more this year than forecast – equivalent to 2.1 per cent of GDP
Total additional borrowing of £96.6bn forecast by 2023-2024 to pay for spending commitments
Effect on business
High Street business rates to be reviewed in coming months.
Firms eligible for small business rates relief will get £3,000 cash grant
Entrepreneurs’ Relief will be retained, but lifetime allowance will be cut from £10m to £1m
£5bn to be spent on getting super broadband into the difficult places
VAT on digital publications, including newspapers, e-books and academic journals to be scrapped at end of the year.
Effect on pay and pensions
NI tax threshold will rise from £8,632 to £9,500, take 500,000 employees out of the tax altogether and leaving hhose earning more than the top rate, £85 a year better off
No other new announcements on income tax, national insurance or VAT
Tax paid on pensions of high earners to be recalculated to address staffing issues
5% VAT on the so-called tampon tax, to be scrapped