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UPDATE: The budget and how it will affect Cornwall

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6:05pm 22nd November 2017
(Updated 6:05pm 22nd November 2017)

The Chancellor has delivered his Budget - and the big winners are first time buyers.

Philip Hammond has announced he's abolishing stamp duty for first-time buyers on purchases up to 300-thousand pounds.

That was just one of a number of policies aimed at tackling the housing crisis.

There is also 2-point-8 billion pounds more investment for the health service and more cash put aside to cover the cost of Brexit.

He told MPs he'll cut Universal Credit waiting times and freeze duty on beer, wine, spirits and most ciders.

But he revealed the Office for Budget Responsibility has cut its forecasts for UK economic growth for this year.

A big point for Cornwall - funding is secured to build a new link road between St Austell and the A30.

Phillip Hammond has promised to "invest to secure a bright future for Britain".

Another big announcement - The National Living Wage will rise - from £7.50 an hour to £7.83.

But unions say it still leaves public sector workers out in the cold.

According to new analysis published by the TUC, the public sector pay cap has reduced spending power in Cornwall by £67 million this year.

The union claims that since the pay caps began in 2010, public sector workers in Cornwall have had £322 million less to spend in the local economy.

Its research has found four of Cornwall's six constituencies are in England's 50 poorest parliamentary constituencies.

The TUC says the South-West economy has lost £3.9 billion since 2010; £812 million this year alone.

The analysis shows that public sector workers are earning, on average, over £2,479 less today than if their pay had risen in line with inflation.

Recent TUC polling shows that one in seven (15%) public sector workers skipped meals this year to make ends meet. One in four (24%) say they couldn't pay an unexpected bill of £500.

Regional Secretary Nigel Costley said: "The public sector pay squeeze has driven up in-work poverty in Cornwall. That means less money spent on high streets and in local businesses.

"The pay cap is a false economy. The Chancellor must use the Budget to give all public sector workers the pay rise they have earned, and end these artificial pay restrictions".

In the Duchy, locals in Redruth have told Pirate FM they are worried about the NHS and food poverty.

"Hopefully food prices will come down and people who are less well-off will have a bit more of a chance instead of having to go to foodbanks".

"We are concerned for the NHS. Not just money, but we would like to see a lot more help put into it".

"Ideally what I'd hope for is to see some sort of investment in the public sector and some sort of investment for the National Health Service and for schools".

"I'd like to see more funding for the NHS, more funding for infrastructure and more funding for education".

 

The key announcements from Chancellor Philip Hammond:

ENGLAND'S HOUSING MARKET

:: Help for young people to secure home deposit - abolishing stamp duty for all first-time buyer purchases up to £300,000. Available on first £300,000 of the purchase price of properties up to £500,000 in London.

: Wider support over next 5 years includes £44bn in capital loans and funding guarantees to help build 300,000 net new homes a year on average by the mid-2020s.

:: Review ordered to study planning laws and 'land-banking'. "We will fix this problem". Threatens compulsory purchases if necessary to get projects off the ground.

:: A £630m small sites fund to "unstick" the delivery of 40,000 homes. A further £2.7bn to more than double the Housing Infrastructure Fund and funding to boost construction skills and jobs.

NHS

:: NHS "under pressure". Extra £10bn investment in this Parliament to improve resilience and make it fit for future. Makes £2.8bn available to NHS in England with £350m for this winter.

:: Pledge of extra cash to support any new pay settlement for nurses.

CLEANER CARS & TRANSPORT

:: From April 2018 the first year VED (car tax) rate for diesel cars that don't meet the latest standards will go up by one band. Emphasises cars only. Money will go to new Clean Air Fund.

:: Future vehicles will be driver-less but electric first. New £400m charging infrastructure fund, invest an extra £100m in Plug-In-Car Grant, and £40m in charging research and development.

BREXIT

:: Extra £3bn to come for Brexit preparation over next two years.

ECONOMY

:: OBR forecasts another 600,000 people in work by 2022.

:: OBR revises GDP growth for 2017 down to 1.5% from 2% and down to 1.4% from 1.6% in 2018.

:: Debt still too high and "need to get it down" - OBR predicts "on track" to meet fiscal rules. Borrowing to fall in every year of the forecast to reach lowest level in 20 years by 22/23. Borrowing forecast to be £49.9bn this year; £8.4bn lower than forecast at the Spring Budget.

BOOSTING PRODUCTIVITY

:: Industrial Strategy at heart of fairer Britain. National Productivity Investment Fund extended for a further year and expanded to over £31bn to upgrade Britain's economic infrastructure for the 21st Century.

:: Help for technology future by unlocking over £20bn of new investment in UK scale-up businesses, including through a new fund in the British Business Bank, "seeded with £2.5 billion of public money."

OCEAN RESCUE

:: Working with Michael Gove to investigate how the tax system and charges on single-use plastic items can reduce waste and keep plastic out of our seas.

EDUCATION

:: Extra £20m to support T-Levels.

:: Working with CBI and TUC on National Retraining Scheme for the workplace.

UK REGIONS

:: Northern Powerhouse, the Midlands Engine and elected mayors across the UK supported with a new £1.7bn Transforming Cities Fund.

:: Budget means £2bn more for the Scottish Government, £1.2bn more for the Welsh Government and over £650m for a new Northern Ireland Executive.

WELFARE AND WAGE

:: Help for families and businesses on cost of living: £1.5bn package to remedy concerns on Universal Credit including removing 7-day waiting period applied at the beginning of a claim.

:: From April, National Living Wage will rise 4.4%, from £7.50 an hour to £7.83.

PERSONAL TAX

:: From April, personal tax allowance to rise to £11,850 and the higher rate threshold to £46,350

BOOZE AND FAGS

:: Legislate to increase duty on 'white ciders'. Duties on other ciders, wines, spirits and on beer will be frozen.

:: Tobacco to rise in line with escalator though extra 1% duty on hand rolling tobacco.

:: Fuel duty frozen.

CORPORATE TAX

:: VAT registration threshold will not be reduced but consultation on design.

:: Small firms to get help on business rates costs by bringing forward the planned uprating switch from RPI to CPI by two years, to April 2018.

:: From April 2019, UK will apply income tax to royalties relating to digital retail sales in UK.

See our live updates and check what else happened below...

6:05pm

Cornwall has welcomed the stamp duty cut for first time buyers...

North Cornwall MP Scott Mann said:“I think this is a fantastic announcement for first-time buyers and I thoroughly welcome the Chancellor’s decision to cut Stamp Duty for people purchasing their first home in Cornwall, saving them thousands of pounds.

“Buying a first home can be daunting and challenging, especially when trying to save up a deposit, securing a mortgage and paying all the associated fees; so abolishing Stamp Duty will remove a major hurdle for all first-time buyers.

Whilst it is still a challenge for people to save a deposit, there are a number of measures in this Budget including the small sites fund, a home builders fund and an extra £15.3 billion for housing delivery.”

housing (Hazel's house in PZ)

4:33pm

Cornwall's Air Ambulance is once again set to benefit from LIBOR funding from the government.

LIBOR is money taken from fines levelled against banks and is used to support armed forces and emergency services charities.

Welcoming the news, St Austell and Newquay MP Steve Double said: “It is great to see the incredible and vital work Cornwall Air Ambulance do again recognised by the Government with the awarding of £36,000 LIBOR funding to help them in their valuable life-saving work.”

“I have been a vocal supporter of Cornwall Air Ambulance in Westminster and will continue to do all I can to ensure they get the recognition they deserve in the future.”

air ambulance 3

4:25pm

What about farmers?

Tim Price, Rural Affairs Specialist at NFU Mutual, said: 

“At first glance, there was not a lot for farmers to get excited about – but a few measures which will ease tax bills – and a huge relief that the Chancellor avoided increases in duty on petrol and diesel which would have hit country people very hard.

“Those running small farms and rural businesses will heave a sigh of relief that they won‘t be faced with expensive accounting admin as the Chancellor has decided to keep the threshold for VAT registration at the current £85,000.” 

“There was good news for self-employed farmers and all those working as employees that the Chancellor has stuck to the Tory’s promise to keep increasing personal tax allowances.  They will be going up to £11,850 for basic rate taxpayers and £46,350 – which means a few hundred pounds more out of the taxman’s grasp.

“No increase in fuel duty rates for petrol or diesel is a huge relief for farmer and their families who currently have no alternative to using these fuels to work the land and get about in the countryside.

“The Chancellor’s extension of Business Rate relief for small pubs will be a help to pubs serving remote rural communities and provide a watering hole for farmers and other locals while no increase in duty on most cider, wines and spirits is a bit of Christmas cheer.

“Confirmation of the Government’s plans to facilitate building of 300,000 new homes by the mid-2020s by the Chancellor could mean great opportunities for farmers in some locations to sell land for building to raise funds for investment elsewhere on their farms – or to diversify and provide a sustainable future for their farms and also local jobs.

"We campaigned hard for the Chancellor to drop plans to increase the rate of Insurance Premium Tax – and we’re delighted that he decided not to further add to the costs of responsible businesses by leaving the tax at its current rate of 12%. NFU Mutual believes further increases in IPT would have placed an unfair burden on country people who have no option but to use cars to get around. 

“We always find that the detailed treasury document behind the Chancellor’s speech contains a few hidden surprises – so check out NFU Mutual’s website nfumutual.co.uk for detailed analysis over the next few days when our experts have gone through the document with a fine toothed comb to pick up hidden measures which could have an impact on farm businesses and personal taxation.”

tractor

4:21pm

Sandra Rothwell, chief executive of the Cornwall and Isles of Scilly Local Enterprise Partnership, said: “We were pleased to see £79m for the A391 connecting St Austell to the A30.

"This was a project supported by the LEP because it enables local growth and improves connectivity through to Newquay and the Aerohub Enterprise Zone.

"There is some good news for small businesses on VAT and rates, and the commitment to boost digital skills and support the construction sector - both high on the LEP’s agenda - are very welcome.

"Overall this was a ‘don’t rock the boat’ Budget and given the downbeat growth forecast we eagerly await publication of the government’s Industrial Strategy White Paper next week which will set the course for future growth and the economy we need to become.”

4:19pm

So what about business?

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said:

“Overall, this is a business-friendly Budget. The Chancellor’s vision for an inclusive economy includes a set of measures that will boost confidence across the small business community as they face extremely challenging trading conditions.

“1.5 million modest-earning small firms and the self-employed will be relieved that we have seen off a VAT tax grab that would have caused huge economic damage. Instead, FSB is ready to work with the Treasury to simplify an over-complicated tax that on average takes a business a whole week to administer every year.

“We welcome the careful approach to protect diesel van drivers while at the same time addressing air quality. We also welcome the fuel duty freeze, which is vital to so many local businesses for customers, suppliers and staff.

“FSB presented a series of reforms to the Chancellor to make the business rates system fit for the future, and we are delighted to see many taken on board to improve a tax that so badly undermines economic growth. We are particularly proud to see the elimination of the staircase tax, a victory that FSB has campaigned hard to secure over the last few months.

“The economic outlook remains extremely troubled, with high costs of doing business and inflationary pressures hitting confidence and deteriorating productivity and growth. New public sector headline investment will help, to scale-up the British Business Bank by two thirds as well as in research & development, local infrastructure, SME house-building, broadband and training. This must now be followed by practical detail in an ambitious Industrial Strategy next week.”

4:17pm

Pay was a hot topic - but the South West TUC says the budget was a missed opportunity for a proper pay rise.

TUC South West Regional Secretary, Nigel Costley said: “All public sector workers have had seven long years of real pay cuts. Today, the Chancellor is once again, skirting around the issue, cherry-picking some sectors and leaving others out in the cold.”

“Public services are a team. It’s good to see the NHS receive more funding so that they can give their workers a proper, long-overdue pay rise. But NHS workers don’t want to see their colleagues in other public sectors lose out. And they certainly don’t want it to be funded off the back of already-stretched public services.

“The Chancellor should have done the right thing, and properly funded a real pay rise for all our hard-working public servants.”

“Today’s budget was a real missed opportunity.”

4:16pm

Speaking about the changes to Universal Credit, St Austell and Newquay MP Steve Double said: “Universal Credit is an important and positive change to put our benefits system on a sustainable footing and make it fit for the future.

"However, we need to get it right. I have been pressing the Government for changes to Universal Credit, particularly in reducing the 6 week waiting time.

"I am pleased to see the Government is listening and making changes that will allow claimants to move smoothly from their previous benefit to Universal Credit and will continue to closely monitor the changes as they roll out to ensure people in Mid-Cornwall are not unfairly affected.”

2:55pm

2:44pm

2:33pm

2:33pm

2:32pm

1:51pm

Corbyn argues all too many 'experiencing long-term economic pain'

1:50pm

Corbyn not content with Universal Credit concessions - says whole thing should be paused to look at the problems it has caused.

1:49pm

1:46pm

Corybn says 'this is a government tossing fuel on the fire' - says Hammond should be backing 'real' living wage

1:45pm

Jeremy Corbyn responds to budget... says three new pilot shcemes for rough-sleepers won't cut it

1:45pm

1:42pm

1:41pm

'We resolve to embrace change and not hide from it' - Hammond concludes Budget for November 2017

1:39pm

1:38pm

When we say we will revive the home-owning dream, we mean it - says Hammond

1:38pm

Big news for first-time buyers...

1:36pm

1:35pm

We must look beyond this parliament to long-term measures, Hammond says on housing.

1:34pm

1:34pm

Hammond says 'urgent review' will look at why building plans are put in, but not fulfilled 

1:33pm

1:32pm

1:32pm

'Solving the housing market takes more than money - it takes planning reform' says Hammond

1:32pm

Solving housing challenge will require investment - Hammond promises at least £44bn of funding to support housing market over next five years

1:30pm

'We need to better still if we are to see affordability improve' says Hammond

1:29pm

Hammond says they have increased supply of homes by 1.1million since 2010.

1:29pm

Pledge to Britain's younger generation... taking steps to address housing issues by promising to build, says Hammond

1:28pm

3 pilot projects will see £28million in funding to address issues of rough sleeping

1:28pm

Addressing homes and homelessness... councils given power to charge 100% council tax premium on empty properties

1:27pm

1:27pm

'This tragedy should never have happened... and we must ensure it never happens again' - Hammond on Grenfell.

It's as he announces a further £28million in funding for support for victims of the Grenfell Tower Fire.

1:25pm

UK Income Tax applied to multinational digital businesses from April 2019

1:25pm

1:24pm

1:23pm

Future evaluations will take place every three years for small businesses - extending £1,000 discount for small pubs to March 2019

1:22pm

1:21pm

Onto businesses... Chancellor says he is 'not minded' to reduce VAT threshold of £85,000 for next two years.

1:21pm

1:20pm

Hammond says he will provide 'additional funding' for payrise for nurses if Jeremy Hunt's negotiations 'bear fruit' - as he announces more funding for NHS

1:19pm

1:18pm

1:18pm

£350million for NHS England immediately for this winter, says Chancellor

1:17pm

Extra £2.8billion announced for the NHS in England.

Hammond thanks nurses, doctors and health staff for continued dedication.

1:17pm

Fuel duty rise for petrol and diesel scheduled for April is cancelled, says Hammond

1:16pm

New railcard announced for people aged between 26 and 30...

1:15pm

Central to government's vision that people have access to the NHS, says Hammond

1:14pm

Air passenger duty rates are frozen in the budget

1:14pm

1:14pm

1:13pm

Personal tax allowance increased to £11,850 from April next year in new Budget

1:12pm

National living wage will rise from £7.50 an hour to £7.83 from April, says Hammond

1:11pm

1:10pm

Chancellor says there will be £1.5billion package to address Universal Credit issues

1:10pm

1:09pm

Initial seven-day waiting period removed for Universal Credit to address issues, says Hammond

1:08pm

Moving to Universal Credit... 'I recognise genuine concerns about operational delivery of Universal Credit', says Hammond.

1:07pm

Hammond says 'I'm getting used to having my ear bent by 13 Scottish Conservative Colleagues'.

1:06pm

Tolls will be abolished on the Severn Bridge by the end of next year.

1:06pm

1:06pm

Great news for campaigns like Clean Cornwall...

1:04pm

Car tax will go up one band for the most polluting diesel cars from April 2018, says Hammond

1:03pm

Chancellor will commit £1.7billion to 'Transforming Cities' fund

1:03pm

1:02pm

1:02pm

1:01pm

Investing £30million in digital skills so people can learn 'wherever they are, whenever they want' says Hammond

1:00pm

"Don't let anyone say I don't know how to show the nation a good time!" - Hammond

1:00pm

Turning to education... Philip Hammond says they will expand teaching Mastery of Maths programme to 3,000 more schools.

12:58pm

Chancellor pledges to tackle plastic pollution to ensure 'our planet has a future'

12:57pm

Electric vehicle charging points funding will be increased by £400million

12:57pm

Future vehicles will be driverless - but they will be electric first, says Hammond

12:56pm

12:55pm

Chancellor says they are allocating a further £2.3 billion for investment in R&D and will increase the R&D Tax credit to 12%

12:54pm

"Those who underestimate Britain do so at their peril" - Philip Hammond

12:53pm

12:53pm

12:52pm

Hammond says at the heart of global Britain 'must be dynamic economy'.

12:51pm

Hammond's already confirmed more money to prepare government departments for Brexit...

12:51pm

12:50pm

12:50pm

12:50pm

12:49pm

OBR forecast for 2018 revised down from 1.6% to 1.4%.

12:48pm

12:47pm

Our debt is still too high and we need to get it down - Hammond during Budget speech

12:47pm

12:47pm

12:46pm

According to OBR forecasts, Hammond predicts 600,000 more people in work by 2022.

12:45pm

Chancellor says 1.4million out of work is 1.4million too many

12:45pm

A little joke - Hammond says he will be sticking to water (rather than a more preferable drink) and has asked the PM for cough sweets just in case...

12:44pm

12:44pm

Hammond says Budget is about much more than Brexit...

12:43pm

12:42pm

Hammond says he has a 'clear vision' of what global vision for Britain will look like.

12:41pm

Hammond says we must invest to secure a bright future for Britain - and this budget will do that.

12:41pm

'We choose to run towards change - not away from it' - Philip Hammond

12:40pm

12:39pm

Chancellor says he reports on an economy that 'continues to grow'

12:38pm

'Express our resolve to look forward, not backwards' - Philip Hammond

12:38pm

Philip Hammond has started his speech on the new Budget... follow live updates here for more.

12:37pm

12:36pm

12:33pm

Hammond's speech due to begin. 

6:05pm 22nd November 2017

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