Chancellor Phillip Hammond has delivered his last Budget before Britain exits the European Union readying the nation and the economy for a ‘new chapter’.
He spoke for 72 minutes outlining the measures that will impact the money everyone earns and spends.
Around 31 million pay income tax – and 25 million will pay at the basic rate of 20%.
Tax rates have not changed, but the amount someone can earn before any income tax or paying higher rate tax have gone up.
From April 6, 2020, everyone can earn £12,500 a year before any income tax is due. Now, the personal allowance is £11,800 a year.
Hard work is paying off
The 40% higher rate will start at £50,000, up from the current level of £46,350.
The thresholds will stay the same in April 2021 and then increase in line with inflation each year.
The rates and thresholds are different in Scotland and any changes have yet to be announced there.
“I can report to the British people that their hard work is paying off and the era of austerity finally coming to an end,” Hammond told MPs in a packed House of Commons.
“The British people have a record to be proud of. Eight straight years of economic growth. Over 3.3 million more people in jobs. Higher employment and lower unemployment in every region and every nation of the United Kingdom.
“Wages growing at their fastest pace in almost a decade. An economy back on its feet again. An economy working not for the few nor even for the many. An economy working for everyone.”
Beer and spirits
Included in Hammond’s speech were announcements about the economy, public spending and other taxes:
- Fuel duty stays frozen for the ninth year in a row
- Air Passenger Duty stays the same for short-haul flights and rises in line with inflation for longer trips
- Beer, cider and spirit duties remain frozen but duty on wine rises in line with inflation
He has allocated more cash to boosting the economy, fixing roads and improving schools, while the promised £20.4 billion pledged for the National Health Service will go-ahead over five years.
Hammond also promised more money for defence and counter-terrorism.
