Economy

GDP growth forecast

  • 2017     2.0%
  • 2018     1.6%
  • 2019     1.7%
  • 2020     1.9%
  • 2021     2.0% 

Inflation

  • 2017     2.4%
  • 2018     2.3%
  • 2019     2.0% 

Annual borrowing

  • 2017     £58.3bn
  • 2018     £40.8bn
  • 2019     £21.4bn
  • 2020     £20.6bn

Debt rose to 86.6% of GDP this year, but will fall to 79.8% in 2021-22. 

Business rates

  • Rates increase will be capped at £50 per month for businesses coming out of small business rate relief.
  • Pubs - £1,000 discount on rates for pubs with rateable value below £100K.
  • £300 million discretionary relief fund for local authorities. 

NIC and tax

  • Class 4 NIC for self-employed will increase from 9% to 10% in April 2018 and then to 11% in 2019.
  • Dividends – tax-free allowance will fall from £5,000 to £2,000 from April 2018.
  • Capital losses – transferring fixed assets to trading stock, it will no longer be possible to convert capital loss into a trading loss.
  • Making Tax Digital – quarterly reporting for businesses below VAT threshold will be postponed by one year to April 2019.
  • Pledge to simplify the administration of R&D tax credits.
  • Consultation to update the tax treatment of employer-provided accommodation. 

Infrastructure

  • New technologies – £270m for robots and driverless vehicles.
  • Mobile – £16m for 5G mobile technology.
  • Broadband – £200m for local broadband networks.
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