The Autumn Budget: What you need to know...
Chancellor of the Exchequer Phillip Hammond delivered his second budget to the House of Commons on Wednesday 22 November. Set out below are the headline-grabbing plans to be introduced over the course of 2018.
- One plan which seems the most popular is the abolition of Stamp Duty for first time buyers of houses valued at up to £300,000. Stamp Duty remains unchanged for houses in excess of the value of £500,000. Over the next five years the government have promised a £44 billion capital investment fund to boost the housing market.
- The Young People’s railcard discount has been extended so that it is accessible to 26 to 30 year olds as well as 16 to 25 year olds. It offers a third off most off-peak and advance tickets, but can't be used on season tickets.
- Universal credit is to be paid out earlier; the standard wait for universal credit benefit claimants to get their first payment will be cut from six to five weeks from February 2018. Claimants will also be able to access a full month's payment within five days of applying.
Overall the economy has seen very little fluctuation over the last year. There are some slightly negative economical points that have come out of the Autumn Budget, such as the growth forecast being downgraded from 2% to 1.5%. Furthermore, the productivity growth and business investment have also been revised to show a downward turn.
What changes may affect the employment sector?
- The National Living Wage will rise in April, from £7.50 per hour to £7.83.
- Another 600,000 people are forecast to be in some form of employment by 2020.
- A £1.5 billion package has been put aside to address issues over the delivery of welfare and pensions.
- Job-seekers allowance will remain the same for the next financial year, at £73.10 per week.
EMW recommend that Employers familiarise themselves with the Budget in details and highlight the plans that might affect their businesses or their market sectors.
If you would like further information on this topic, you can contact Millie Kempley or another member of the employment team on 0345 070 6000.