UK growth forecast cut in the Budget

Media playback is unsupported on your device

Media captionThe chancellor abolishes stamp duty on homes under £300,000 to help first-time buyers.

Chancellor Philip Hammond has given a sobering assessment of the economy, saying it is expected to grow more slowly than previously thought.

But he sought to rally Conservative MPs in his Budget by scrapping stamp duty for the first £300,000 spent by first-time buyers, a saving of up to £5,000.

The cut will apply to buyers in England, Wales and Northern Ireland.

Mr Hammond also promised £1.5bn to “address concerns” about the flagship universal credit scheme.

Labour leader Jeremy Corbyn said the government had a “record of failure”.

At the start of his speech, Mr Hammond struck a positive note, saying the economy continued to “confound those who seek to talk it down” by creating jobs and continuing to grow.

But he then said productivity levels remained “stubbornly flat” with growth until 2021 expected to be lower than predicted in March.

It is the first time in a generation that growth is forecast to grow below 2% every year.

Mr Hammond’s statement came with him under pressure from Eurosceptic Tory MPs and others calling for more spending to ease austerity.

The chancellor – who has been accused of being too pessimistic about life outside the EU – said £3bn would be spent on Brexit planning, and that the government would prepare for “every possible outcome”

What were the other key announcements?

  • Freezing alcohol duty apart from an increase in duty on high-strength white ciders
  • The price of 20 cigarettes goes up by 28p and by 41p for 30g of rolling tobacco
  • A promise to fund a pay rise for nurses if one is recommended by an independent panel
  • Refunds on VAT for Scottish emergency services
  • A one-off tax on new diesel cars that do not meet latest emissions standards
  • £28m for Kensington and Chelsea council for counselling and regeneration in the aftermath of the Grenfell Tower fire
  • Bringing forward a planned cut in business rate rises by two years to 2018
  • An extra £2.8bn for the NHS in England up to 2022
  • Support for electric cars including a £400m charging infrastructure fund
  • A new railcard offering discounts to those aged between 26 and 30

Housing – what’s changing?

Image copyright PA

Housing had been billed as one of the key themes of the Budget – and the chancellor promised the “next generation” that getting on the housing ladder would not be just a “dream”.

Promising the government would deliver 300,000 new homes a year, he pledged £44bn capital investment and measures aimed at getting building projects started.

And towards the end of his speech he made the pledge on stamp duty, which is paid by people buying properties over a certain value.

Rates vary across the UK – in England, Wales and Northern Ireland it kicks in at £125,000 – and in Scotland, which has its own devolved tax – at £145,000.

The cut will only operate in Wales until the matter is devolved next April and stamp duty replaced by a land transaction tax.

Mr Hammond said his change would benefit 95% of first-time buyers.

But in its assessment, the Office for Budget Responsibility said the main gainers would be those who already own a home.

It also said it would lead to higher house prices and predicted it would only lead to an extra 3,500 first-time buyer purchases.

Among the £44bn package was a pledge to make it easier for councils to build in areas of high housing need.

There was also a threat to intervene with compulsory purchase orders if landowners and developers were found to be holding back on building “for commercial rather than technical reasons”.

Mr Hammond said investing more money alone would simply inflate prices and make matters worse.

He added: “Solving the housing challenge takes more than money, it takes planning reform. We will focus on the urban areas where people want to live… building high quality, high density homes.”

Gloomy economic forecasts

Image copyright AFP

As well as spending announcements, the chancellor also uses his Budget to update MPs on the state of the economy.

And they cast a shadow on his other announcements, with the Office for Budget Responsibility predicting the economy would grow by 1.5% this year, down from the estimate of 2% it made in March.

Growth, it says, will drop to 1.3% by 2020 and then rise to 1.5% in 2021, lower in every year than was predicted in March.

Borrowing was predicted to be £8.4bn lower than in March, but long-term deficit predictions were hiked to £34.7bn in 2019, going down to £30.1bn in 2021.

Mr Hammond said he was still on track to hit his target to balance the nation’s books by the middle of the next decade.

What were the universal credit changes?

Another high-profile announcement was on universal credit, which is the government’s major reform to the way benefits are paid and is currently being rolled out across the UK.

Campaigners and MPs in all parties have been calling for changes to the way it is managed.

The £1.5bn will remove a mandatory seven-day wait after someone submits a claim, taking the overall wait down from six weeks to five.

Mr Hammond also said it would become easier for claimants to receive an advance.

Labour leader Jeremy Corbyn wasn’t impressed

Media playback is unsupported on your device

Media captionJeremy Corbyn: “So much for tackling injustices”

Responding in the Commons, Mr Corbyn predicted the Budget would unravel, warning “misery” will continue for people across the country.

He cited falling wages and added that economic growth in the first three quarters of this year was the lowest since 2009.

The Labour leader also noted the lack of major social care policies in Mr Hammond’s statement.

And he reacted angrily to a heckle from the Tory benches as he said elderly people were not receiving good enough care.

Addressing Conservative ranks, he shouted: “I hope the honourable member begins to understand what it’s like to wait for social care stuck in a hospital bed while other people are having to give up their work to care for them.”

What did the BBC’s Laura Kuenssberg think?

Media playback is unsupported on your device

Media captionLaura Kuenssberg’s instant take on the Budget

It wasn’t a drama – it wasn’t a Budget that would inspire queues at the Box Office.

No surprise. When “Box Office Phil” was given that nickname, it wasn’t because he has a reputation for delivering political thrillers.

What he tried to do was to act on concerns expressed at the general election and by rebels on the Tory backbenches as well as the Labour opposition.

A lighter moment

Media playback is unsupported on your device

Media captionThe chancellor tells MPs he is sticking to water as the prime minister hands him cough sweets – returning the favour from her party conference speech

What are people saying about it all?

SNP leader Nicola Sturgeon welcomed the news that the emergency services would no longer have to pay VAT – but stressed the Tory government must refund earlier payments to the two forces.

She set out her reaction to Mr Hammond’s statement on Twitter:

Also on Twitter, the top doctor in NHS England was not convinced by the extra funds being allocated to the NHS:

The CBI said the Budget “balances support for people on squeezed incomes with vital action to help grow the UK out of austerity”, and the Federation of Small Business said it was a “business-friendly Budget”,

But the GMB union said it was a “let down”, and that the public sector pay cap continued to bring “misery” to thousands of workers.

Liberal Democrat leader Sir Vince Cable criticised the £3bn being spent on leaving the EU, saying the cash was “disappearing down a Brexit black hole”.

But on the other side of the EU debate, the Leave Means Leave campaign welcomed what it said was the “first time the chancellor has had anything positive to say about Brexit”.

You might also be interested in:


Will the budget announcements for first-time buyers or railcards affect you? Share your views by emailing haveyoursay@bbc.co.uk

Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:

  • WhatsApp: +447555 173285
  • Tweet: @BBC_HaveYourSay
  • Send an SMS or MMS to 61124 (UK) or +44 7624 800 100 (international)

Or use the form below

More From this publisher : HERE ; This post was curated using : TrendingTraffic

 


RELATED PRODUCTS
  • Sensual hair growth a guide which revals how to grow hair long,desired and sensual hair.
  • This ebook includes tips, tricks, and price breakdowns to save money
  • The easiest way to make money with Bets For Today.
  • Discover Crucial Steps Which Will Turn Time Of Crisis Into A Time Of Strength and Meaning.
  • The only constantly complete guide to immigration and success in the UK.
  • New Routine Reveals How To Get Huge and Make Your Friends Jealous
  • Join Parallaxmind Members Monthly And Save 100s On Self-help Free Demos
  • Learn Some Awesome Ways To Cut Down Your Grocery Budget Up To 90 By Couponing.
  • Discover the infinite potential with the mostadvanced personal and mind development tool in existence
  • Clickbank Ads
     

    If you like our content help us with a share… or two …  

    Also -  I have some free stuff for you .......

    Nr 1. In This FREE Report you can Discover:

    Secrets to acquiring the freshest, hottest leads via YouTube In-Stream ads quickly and easily! Best secret tips for the most effective targeting for your ads! Totally legal, but little-known method for literally stealing traffic from your competitors! Get more traffic to your videos and landing pages without spending a fortune! And much more - all within this special FREE report!

     

    Nr 2. Did you know you can Absolutely EXPLODE YOUR EMAIL LIST FOR FREE with UNTOUCHED offline sources?

     

    Nr 3. The #1 secret to becoming an affiliate superstar - Earn your first $100 online – without a dime to invest.

    If you’re still looking to “make it online – I have just the thing for you. It’s a video series that shows how to make your first $100 online – even if you don’t have a dime to invest. Yes – nothing.  Free.  Nada. Is this possible? You bet. It’s the most powerful system used by those “in the know”. Good things don’t have to be difficult. And they don’t only come to those who wait. Have A Look

     

    Nr 4. Top 10 Email Marketing Mistakes. Which of these mistakes do you make?

     

    Nr 5.  You can learn about : The hottest social networking site that will send an unlimited stampede of traffic to your site - for FREE! How to quickly locate a swarm of hungry buyers using "information portals"! The fast and easy way to use simple images to siphon targeted traffic, on command! Learn how to get the most possible traffic from Instagram, and make sure that traffic converts! And much more ...

     

    Nr 6. It’s no secret… Facebook is an incredible place to get tons of free, viral traffic. But… most people are going about it all wrong.  How many of these mistakes are you making? Download the free report to find out.

       

    Nr 7.  Special free report .  It's called "Operation Midas Touch" and you can download it here...

    The report features a surefire method for generating at least $1000 per week online,without a website or product of your own!

    Nr 8.  Instagram is still one of the hottest ways to get a LOT of traffic fast. All by sharing images. Sounds easy enough, yeah? Well, yes and no. If you want to really start driving a lot of  traffic and making sales using Instagram then you should download this report.

    Nr 9.  When it comes to creating a product online there are so many ways to approach it. Wouldn’t it be great to just get the meat of it all so you can get started faster? Well, the good news is, today you can download a guide called the Product Creation Formula Quickstart Guide. It’s as the title suggests - a Quickstart guide. You’ll get a list of action steps to take right away. Download your copy today !

    Nr 10. Would you like to finally USE all of that dusty PLR you have sitting around on your harddrive? Or maybe find the resources for the best PLR available - at the best prices? What about how to use that PLR to make you money with just a few minutes of work. Well, you’re not going to want to miss this!

      Nr 11. Buzzfeed’s top post has more than 21 million views. Think about that for a sec… ONE of their articles has had over 21 million people who have read it! And they have thousands of articles... what would you do with that kind of traffic? A friend of mine hacked their method and was able to use it to get 11,592 targeted new subscribers in 2 weeks on their very first attempt!

    Nr 12. Push notifications are one of today's hottest trends in website traffic and conversions, and for good reason. Studies have shown that as many as 40% of people will opt-in for push notifications, which is about TEN TIMES the rate of people who opt-in for emails! That’s huge! Not only that, but they're also highly effective at pulling clicks, as well. Some studies have shown CTR at an average of around 40%, with highs of as much as 80%! Again, that’s huge!

    Nr 13. Would you like to know how to get more money from the exact same number of website visitors you’re currently getting? Even if you’re website is getting as few as 1-2 visitors a day, this report will show you how to increase your profits using these few handy hacks.

    Nr 14. People have now realised that it's not the size of the list which matters, it's the quality. ... and the only way to create a quality list is by launching your own products. Let it be $7 ebooks, $17 info products, $27 video training product or software's... all of these work. My good friend Kevin Fahey has is revealing how he's launched over 20 products in the past 4 years, many of them top sellers. Needless to say he's banked a handsome amount in this time.

    Nr 15. Do you ever feel that the man you like or even love, just doesn't see you or desire you in way you want him to? Or... maybe you're able to get a man's attention though not the right kind of attention? Or... maybe you're still single because you wait and wait for men to approach you first? What you may not know is that the way we flirt will either attract the "wrong" man for us or the "right" man.

    Nr 16. When it comes to getting sales and leads online, there is ONE thing that 95% of marketers use... it's called a LIST. My friend Jimmy just released a free book that explains WHY a list is important and how YOU can build your own list. It's available right here (and it won't cost you a penny)

    Nr 17. If you have tried everything, and still aren't able to get your Ex back, then you need to pay attention.

    Nr 18. What if I told you that you could make ANY woman WANT to do ANYTHING for you? Would you think I'm crazy? Well... what If I told you that you could also make her LOVE every minute of it and come back for more?

       

    Nr 19. I have a special free plugin for you today. It's called "Covert Hover Mini"

    This plugin will triple your blog traffic by compelling your visitors to share your images on social media. This is some really clever stuff and it works like a charm. After you grab your free plugin, don't  forget to read the free bonus report as it will show exactly how and why this strategy works like crazy.

    Nr 20. The days of being able to get away with a basic WP theme and a pic or two are gone, your site needs to look good. Even Google are looking for you to have engaging graphics on your site. But getting good quality graphics made for your site is a pain, AND it will cost you both time and money (if you outsource it). But I have a special free download for you today. A virtual treasure chest of over 21K profit pulling graphics you can start sing today to generate more traffic & sales!

    Nr 21. 20 professional full HD background videos. These background videos are perfect for giving your videos that extra kick they need to stand out from the crowd Oh yeah they are in full 1080p HD too, I hope you'll enjoy them.

    Nr 22. If you've ever failed to create a WordPress site of your own or typically waste hours & even weeks trying to figure it all out on your own....

    Nr 23. No doubt, you've seen all of the video launches lately! There is a reason for it... Video marketing is a GREAT way to make money, and with the recent creation tools making it super accessable for anyone to get started... It's no surprise that more people are making videos. However... there is a missing element to most video marketing products...

    Nr 24. For the first time ever... You can get the straight scoop on how someone is selling over $1,000,000/year of t-shirts on Facebook!

    Use them  .... and have fun !