Phillip Hammond's #Budget2017. What’s in it for small businesses and startups?
Here are the key points for those of you too busy growing or launching a business to sit through an hour of bad jokes, and all the boring commentary from the MP's!
The underlying message is that the UK economy as a whole is weaker than thought back in March. But the government have announced a few schemes to boost entrepreneurship and help start-ups to boost productivity.
The state of the economy
- Growth forecast for 2017 downgraded from 2% to 1.5%
- GDP downgraded to 1.4%, 1.3% and 1.5% in subsequent years before rising to 1.6% in 2021-22
- Productivity growth and business investment also revised down.
- VAT threshold for small business to remain at £85,000 for two years. Helps to keep a huge chunk of small businesses out of VAT.
- £500m for 5G mobile networks, fibre broadband and artificial intelligence.
- £540m to support the growth of electric cars, including more charging points.
- A further £2.3bn allocated for investment in research and development.
- Rises in business rates to be pegged to CPI measure of inflation, not RPI.
- Staircase tax: businesses hit will have original bill reinstated.
- Income tax to be applied from April 2019 on digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction.
- Does your startup hire someone on minimum wage? The “national living wage”. From April will rise 4.4% from £7.50 an hour to £7.83
- £3bn to be set aside over next two years to prepare UK for every possible outcome as it leaves.
Alcohol, tobacco, gambling and fuel
- Tobacco will rise by 2% above Retail Price Index (RPI) inflation while the minimum duty on cigarettes introduced in March will also rise, as will duty on hand-rolled tobacco.
- Duty on beer, wine, spirits and most ciders will be frozen.
- Vehicle excise duty for diesel cars that do not meet latest standards to rise by one band in April 2018
- Tax hike will not apply to van owners.
- Existing diesel supplement in company car tax to rise by 1%.
- Proceeds to fund a new £220m clean air fund.
- Fuel duty rise for petrol and diesel cars scheduled for April 2018 scrapped.
- Tax-free personal allowance to rise to £11,850 in April 2018
- Higher-rate tax threshold to increase to £46,350
- Short-haul air passenger duty rates and long-haul economy rates to be frozen, paid for by an increase on premium-class tickets and on private jets
Health and social care
- £10bn capital investment fund for hospitals
- Long-term goal to build 300,000 new homes a year by the mid-2020s
- £44bn in government support, including loan guarantees, to boost construction skills
- Review to look at ways of speeding up planning permission for new developments.
- £28m for Kensington and Chelsea council to provide counselling services and mental health support for victims of the Grenfell fire and for regeneration of surrounding area.
- One million new homes on the Cambridge-Milton Keynes-Oxford corridor by 2050.
- Helping to create the tech founders of the future? 8,000 new computer science teachers to be recruited at cost of £84m.
- Second devolution deal for the West Midlands.
- £1.7bn transport fund for city regions.
- £2bn for Scottish government, £1.2bn for Welsh government and £650m for Northern Ireland executive.