Today, the Chancellor, Philip Hammond, delivered his Spring Statement – billed as an update on the state of the economy, rather than a mini-budget. The Chancellor confirmed that the UK economy is performing better than previously forecast. The Office for Budget Responsibility (OBR), the UK’s independent economic watchdog, increased its forecasts for UK growth to 1.5% for 2018. This morning, the Organisation for Economic Co-operation and Development OECD joined them in raising their forecast for growth this year.
This means our economy will grow more quickly, which will lead to more jobs, and greater tax revenue. The OBR expect unemployment to remain close to its 40-year low, so we can continue to build on our strong record of over 3 million jobs created since 2010. The OBR also join the Bank of England in predicting that pay will start to increase faster than inflation this year, and for the foreseeable future. This is good news for working families, particularly those on low and middling incomes.
A number of recent budgetary measures will directly benefit us, locally, in Elmbridge. We have abolished stamp duty for first-time buyers entirely for those spending under £300,000, and on the first £300,000 for those spending less than £500,000. This will exempt 80% of this group from paying stamp duty entirely, while cutting the bills for 95%. It has already helped 60,000 people get onto the housing ladder, and saves the average first-time buyer in Elmbridge £5,000.
We are also supporting local businesses and the High Street. The government has introduced a package of Business Rate relief worth almost £10 billion. The government has also brought forward the planned switch from RPI to CPI by two years, to next month, a move which will save businesses £2.3 billion over the next five years. This will support local small businesses, in Elmbridge and nationally, which are vital for driving job creation.
Finally, the tax-free allowance will rise to £11,850 from next month. This means that the average worker will take home an extra £1,075 a year compared to 2010. You can read a summary of the key points made by the Chancellor here.