Spring Statement: What were the key points?

Image source, EPA

Chancellor Philip Hammond has updated Parliament on the state of the economy and the nation's finances. Here are the main points from his Spring Statement.

Economy

  • Growth forecast for 2018 revised upwards from 1.4% to 1.5%
  • 1.3% growth forecast for 2019 and 2020 left unchanged
  • Inflation forecast to fall from 3% now to 2% by end of year
  • Wages expected to rise faster than prices over the next five years

Public finances

  • Government forecast to borrow 拢45.2bn in 2017-8, 拢4.7bn lower than predicted in November
  • Borrowing forecast to fall every financial year to 拢21.4bn in 2021-22
  • Debt as a share of GDP to fall from 85.6% in 2017-8 to 85.5% in 2018-9
  • Ratio set to drop to 85.1% in 2019-20, 82.1% in 2020-21 and 78.3% in 2021-22
  • Cost of debt interest payments remains about 拢50bn a year

Spending

  • 拢1.5bn allocated so far to departments to prepare for Brexit in March 2019
  • 拢1.67bn given to London to start building a further 27,000 affordable homes by end of 2021-22
  • Budget for Housing Growth Partnership to be more than doubled to 拢220m
  • The National Living Wage will rise, as previously announced, to 拢7.83 an hour in April

Tax

  • 60,000 first-time buyers have benefited from stamp duty holiday in November's Budget
  • Consultation on reducing tax on the least polluting vans
  • Consultation on tax changes to discourage use of single-use plastic, including takeaway boxes and disposable cups
  • 拢20m for firms businesses and universities to research ways to reduce plastic's environmental impact
  • Consultation on a new VAT collection mechanism for online sales
  • Government sets out ideas for "fairer" taxation of multinational digital businesses
  • Consultation on extending current training tax relief to self-employed people and employees

Business

  • Next revaluation of business rates to be brought forward by one year to 2021
  • English cities invited to bid for remaining 拢840m from regional transport fund
  • 拢95m to be given to 13 areas for rollout of full-fibre broadband
  • Consultation launched on the role of cash in the new economy, including future demand for 1p and 2p pieces and 拢50 notes