Ten things you need to know about the budget

Budget 650

This year’s Budget is the first since the UK voted to leave the EU and the last that will be delivered in the Spring. The Chancellor, Phillip Hammond, announced the introduction of a new Budget timetable which will be delivered in the autumn, and a Spring Statement which will replace the traditional Autumn Statement.

This means that 2017 will have two budgets. So how has the first one – delivered 8 March – affected you? We picked the top 10 themes below:

1. Personal allowance increased
The current personal allowance – the amount you can earn tax free each year – will rise from £11,000 to £11,500 from April 6 2017.

2. Higher rate threshold raised
The threshold for paying higher-rate, 40%, will also rise from £43,000 to £45,000. The exception is Scotland, where owing to devolved powers it will remain at £43,000.

3. Employee benefits will be taxed
Pensions, childcare and the cycle to work scheme won't be taxed in full after April. However, other benefits, such as work gym memberships and health insurance will now be subject to tax.

4. National Living Wage increased
The National Living Wage will rise from £7.20 to £7.50 in April, for those aged 25 and over. Public sector pay has already been set at a 1% annual rise each year until 2019-20.

5. Tax-free childcare increased
Tax-free childcare for working families with children under the age of 12 will be rolled out, providing up to £2,000 a year per child. From September, free childcare available will double to 30 hours a week for families in England with children aged between 3 and 4 years old.

6. Support for small business owners
Businesses losing small business rate relief next year will see bill increase capped at no more than £50 a month. A £300million fund will also be set up for local councils to go towards discretionary relief for businesses.

7. Social care increased
An extra 2bn funding for social care and the NHS has been pledged over the next three years.

8. NHS Funding
The government pledged £425 million to improve local NHS services and support Accident and Emergency improvement.

9. Education investment
Funding will be made available for 101 new free schools and T-Levels - the technical equivalent to A-Levels – will be introduced. £300 million has also been pledged to support the brightest research talent.

10. Saving even more rewarding
The ISA limit will increase to £20,000 a year from April. A new LISA, or Lifetime ISA, will be introduced that will enable people to save for their first home and retirement.

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