Budget 2018: All there is to know
As a yearly ritual, the British government holds Budget day, which is a very challenging one for Chancellor Philip Hammond. During the Conservative Party Conference or CPC, the topic of Budget is one which lifts many eyebrows and make room for numerous debates among members. Prime Minister Theresa May affirmed that austerity is heading towards cessation. On the menu, tax hike, strategic spending and unavoidably, Brexit of course. We will go over a few key elements we judge of having relevance to you, the regular tax-paying citizen!
Austerity & Tax Hike
The tax-free Personal Allowance is the amount you earn prior to paying income tax. It will hike by another £650 in April 2019 to £12,500.
This hike comes a year sooner than expected, and will be preserved in 2020. In other words, a standard rate taxpayer will disburse £1,205 less tax in 2019-20 than 11 years earlier.
Pay & Benefits
The unemployment rate is at a record low since the 1980s, the number of people currently working surpasses 3.3 million since 2010 also the OBR predicts more than 800,000 within the next four years. The national living wage rewarded to workers aged 25 and plus will increase from £7.83/hour to £8.21/hour in the first quarter of year 2019, as announced by Chancellor Philip Hammond.
Numerous working-age benefits are almost three years through a four-year freeze. These involve Jobseeker's Allowance, Employment and Support Allowance, a few Housing Benefits, and Child Benefit.
Cost of fuel
As of 2019, fuel duty will continue its freeze for a ninth consecutive year, making the regular passenger car driver save another £1,000 since 2010.
Cost of booze
One pint of beer will decrease of 2 pence in cost if duty had risen due to inflation.
It’s a known fact that chancellors like to pull a rabbit out of their hats for Budget day and rumor has it that this year it will be on housing.
Millennials who cannot afford to purchase their first homes are closely following Mr Hammond. The latter is eager to demonstrate that the government is cooking something up to help youngsters get out of renting. The Treasury is additionally considering dividing the enormous income returns landowners get when part of a land is conceded arranging consent with domestic officials.
The Assembly could then utilize that cash to construct social housing, along with the additional sums for house building. One more act giving more possibilities to tenants to purchase the homes they have been renting for a long time is likewise on the table.
Mr Hammond pledged an additional £500m for the Housing Infrastructure Fund - a bucket of cash that local officials can administer to help with the construction of new homes. This additional cash could aid the building of 650,000 more homes, he stated. Authorities have also struck deals with nine housing associations to make available more than 13,000 homes throughout England.
What about Brexit?
Brexit is arguably the most anticipated change the entire country is waiting for. Taking into account that this year’s budget was based on UK being part of the European Union and whether or not a deal will be reached between the two, one this is assured; 2019 will be quite a challenge for the Chancellor of the Exchequer.
At last, in light of the yellow vest movement in France, protestors have recently stopped traffic on London’s Westminster Bridge to express concerns about the slow process of Great Britain’s departure from the EU. Could this escalate into something bigger? Only time can tell.