Ulster Economix will be blogging live on Wednesday 16th March from when the Chancellor takes the floor, around 12.30pm. Read our Budget 2016 preview here.
*** Refresh your browser for updates ***
Have a look at our more detailed analysis of today’s Budget
A bit of an action packed Budget. We’re away to digest the detail and will be back with fuller analysis later. Watch this space!
The personal allowance raised to £11,500. The higher rate threshold for income tax increase to £45,000 next year
Freeze on whiskey duty too. All other alcohol duties to rise as planned
Fuel duty has been frozen. Beer and cider duty frozen too
Insurance Premium Tax to increase by 0.5%
Thomas the Tank Engine Economics – commitment to HS3 between Manchester and Leeds. A range of projects announced to try to get Northern Powerhouse off the ground
“Devolution Revolution” taking hold, says the Chancellor
Air ambulance for Northern Ireland and a commitment to enterprise zone in Coleraine
Support for oil & gas industry in Scotland (remember it’s PMI is languishing below the 50 expansion threshold) – effectively abolishing Petroleum Revenue Tax
Business rates relief threshold for small firms to increase from £6,000 to £15,000
Corporation tax – by April 2020, will fall to 17%. Makes NI’s planned cut less impactful?
Chancellor is a serial corporation tax cutter
£12billion to be raised from measures to stop tax avoidance over this parliament
“We’re all in this together”
Net debt (as % of GDP) forecasts
OBR forecasts for the deficit – deficit 2.9% in 2016/17, 1.9% in 2017/18, and 1% in 2018/19
Aiming to save £3.5billion from government spending by 2020
Public spending to be cut to 36.9% of GDP by the end of the parliament
“Living within our means” – another popular phrase with the Chancellor
Inflation (CPI) forecasts – 0.7% in 2016 and 1.6% in 2017
“Long-term economic plan”. A phrase that is being flogged to death?
Brexit implicitly gets a mention – economic forecasts dependent on UK staying in the EU, says Chancellor. Therefore forecasts could be materially different on 24th June
Forecasts for economic growth – 2% growth this year. 2.2% in 2017 and 2.1% in the following three years
The Chancellor says still on course for a budget surplus by 2020
“We choose to put stability first”… “We choose the long-term”… “Sound public finances”… “Lower taxes”
Some things we might hear from the Chancellor shortly:
- Sugar tax
- Corporation tax cut
- Fuel duty increase
- Land Value Tax
- More cuts!
Less than 10 minutes to go. The PM currently talking about energy