Summary

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  • BUDGET KEY POINTS

  • "Era of austerity is finally coming to an end," he says

  • New UK digital services tax on revenues of tech giants from 2020

  • Predicts meeting his structural borrowing target three years early

  • 2018 growth forecast upgraded from 1.3% to 1.6%

  • Budget deficit forecast for 2018/19 cut to £25.5bn from £37.1bn forecast in March

  • Tax on import of plastic packaging which contains less than 30% recycled plastic

  • Government abolishes use of Private Finance Initiative

  • Extra £1bn in defence spending to boost cyber capabilities

  • Extra £420m to repair potholes

  • Additional £500m set aside to prepare for a no-deal Brexit

  • Annual Investment Allowance increased from £200,000 to £1m for two years

  • Personal allowances and higher rate threshold raised - a tax cut for 32 million people, he says

  • An extra £160m for counter-terrorism police

  • Confirms an extra £20.5bn for the NHS over the next five years

  • £60m for planting trees in England

  • A further £500m for the Housing Infrastructure Fund

  • Duties: Fuel, beer, cider, spirits tax frozen

  • 1.2% annual average growth in departmental spending promised

  • Hammond finishes Budget speech after 1hr 12mins

  1. How long?published at 18:33

    person asleepImage source, Thinkstock

    For us live pagers, the Budget speech always feels pretty long as it can be tough to type as fast as the Chancellor speaks.

    But it turns out that this time the Budget speech really did go on.

    According to the Share Centre, Philip Hammond's speech - which lasted for a whopping one hour and 12 minutes - was the longest for a decade.

  2. 'Will we ever be able to afford housing?'published at 18:25

    BBC Radio 5 live

    Ryan and Charlotte

    BBC Radio 5 Live are in a shopping centre in Leeds asking people what they want to know about the Budget.

    Ryan, 21, is a junior art director. He wants to know if he will ever be able to afford a house. He's interested in today's shared ownership changes, but says "this is my fourth year of renting in a shared house, it's £470 a month, I haven't saved anything towards a deposit at all".

    Ryan says there's a lot of uncertainty about where he will end up: he has "no idea" how he would save for a deposit.

    Charlotte, 22, wants to know if the personal allowance increase will mean anything to her. She works as a junior copywriter earning about £18,000 per year so will gain £130 a year from next April.

  3. NHS £20bn 'nowhere near enough'published at 18:18

    John McDonnell

    John McDonnell, the Shadow Chancellor, tells the BBC: "We're certainly not seeing the end of austerity."

    He says he's disappointed about "cuts" going on in government departments, hitting police and other services.

    The extra £20bn allocated for the NHS is "nowhere near enough", Mr McDonnell adds.

  4. Cable: 'nothing substantial'published at 18:13 Greenwich Mean Time 29 October 2018

    Vince CableImage source, Getty Images

    Unsurprisingly Liberal Democrat leader Sir Vince Cable says today's Budget contained "nothing very substantial".

    He is particularly critical of the £1.7bn boost to Universal Credit spending and points out that two years ago, £3bn was taken off the spending on the benefit for working-age people.

    "So they are worse off than before so people are going to feel that," Sir Vince says.

  5. House price optimism?published at 18:07

    Speaking of the property market, the Office for Budget Responsibility is pretty optimistic on house price rises, as BBC personal finance correspondent Simon Gompertz has spotted.

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  6. Private Residence Relief changespublished at 17:57

    For sale signsImage source, PA

    More exclusive analysis of the Budget for the BBC from Mark Stokes of Deloitte.

    He says new restrictions to Private Residence Relief, which takes gains on the sale of your main home outside the charge to capital gains tax, will apply from April 2020.

    Gains relating to the final 18 months of ownership are exempt from capital gains tax, regardless of whether the owner has occupied the property, but from April 2020 this period will be cut to nine months for most people.

    In addition, the “lettings relief” which typically exempts up to £40,000 of gains when a taxpayer’s main residence has been let out, will only be available if the owner has lived in the property with their tenant.

  7. Martin Lewis gets personalpublished at 17:52

    BBC Radio 5 live

    Personal finance expert Martin Lewis has been explaining the changes to personal allowances on BBC Radio 5 Live.

    "The big one was the change of personal allowances ... currently the personal allowance, which is the amount most people can earn before income tax, is £11,850. From next April it will jump to £12,500, so it's increasing by £650, therefore the £650 of earnings you would pay tax on at 20% you're now not, meaning a £130 a year gain for anyone earning over £12,500.

    "He's also changed the rate that the higher rate tax band will start. Currently it's £46,350, from next April it will jump to £50,000 which means another £730 in the pay packets of people who are above £50,000 unless you get to be a very high earner."

  8. Meowpublished at 17:47

    Guardian political editor Heather Stewart is not impressed:

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  9. 'No bonanza'published at 17:43

    Paul Johnson

    Paul Johnson of the Institute for Fiscal Studies says what jumps out of the Budget Red Book - which gives more detail than Philip Hammond had in his speech - "is what is not there".

    "We don't have a Spending Review total which the Chancellor promised us in the Spring Statement," he tells the BBC.

    Looking further ahead there is about £30bn of additional spending, "almost all of which is on the NHS", but the assumptions in the Red Book suggest that funding for other services will remain flat, Mr Johnson adds.

    "Arguably [the Chancellor] has just about got to the minimal definition of the ending of austerity and it's certainly nothing like a bonanza for the rest of public services."

  10. Tech industry says new tax 'bad' for investmentpublished at 17:37

    composite image

    Not terribly surprising that the industry body for the tech sector says the new digital services tax will be "bad for investment and bad for the UK economy".

    "This approach risks undermining the UK’s reputation as the best place to start a tech business or to invest. The £500m threshold the Chancellor proposed is low and risks capturing much smaller companies than anticipated," warns techUK chief executive Julian David.

  11. Money does grow on trees?published at 17:32

    BBC political editor Laura Kuenssberg comments:

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  12. The Budget in 120 secondspublished at 17:28

    Media caption,

    Budget 2018: Key announcements from the chancellor

    Politics Live presenter Andrew Neil goes through the key announcements from the chancellor in his 2018 Budget.

    Budget headlines in two minutes

    Politics Live presenter Andrew Neil goes through the key announcements from the chancellor in his 2018 Budget.

    Read More
  13. 'More treats than tricks'published at 17:25

    Carolyn FairbairnImage source, Getty Images

    Business body the CBI has given a Halloween twist to its Budget response, with director-general Carolyn Fairbairn (pictured) saying Philip Hammond brought "more treats than tricks for business".

    “It recognises the enormous contribution enterprise has made to balancing the UK’s books through jobs, pay and tax and responds to many of the recommendations that firms have made. But while the Chancellor has reduced some of biggest barriers to growth, he has missed some opportunities," she says.

  14. OBR boss: we didn't get it wrongpublished at 17:20

    Robert Chote, who chairs the Office for Budget Responsibility, insists the body hasn't been too negative with its forecasts.

    He says its forecasts for government borrowing were more negative than the reality because tax revenues were much stronger than they had expected - "even though the economy has performed less strongly than forecast".

    "It could mean the official stats are under-estimating the cash size of the economy or general improvement in the tax revenues we get from each pound," Mr Chote adds.

  15. Government plans not all checkedpublished at 17:14

    The government's official forecaster, the Office for Budget Responsibility, admits it hasn't been able to certify all the government's spending plans, as Newsnight presener Evan Davis tweets:

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  16. Corbyn: more help for regions and retailerspublished at 17:08

    Jeremy Corbyn

    Jeremy Corbyn attacks the government for not doing enough to help the regions.

    He says: "Britain is the most regionally-unequal country in Europe. The government reinforces these disparities."

    On the Chancellor's help for retailers and restaurants through business rates relief, the Labour leader says the proposal "only unpicks his own disastrous [rates] revaluation last year".

    He says High Streets won't thrive until people have more money to spend.

  17. 'Growth still sluggish'published at 17:03 Greenwich Mean Time 29 October 2018

    The Institute for Fiscal Studies isn't impressed by the improved growth forecasts, warning they suggest that sluggish growth is set to continue.

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    However, Samuel Tombs at Pantheon Macroeconomics comments:

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  18. Mental health cash 'not enough'published at 16:58 Greenwich Mean Time 29 October 2018

    Jeremy Corbyn says the Chancellor's promise to spend more on mental health is not enough.

    He says experts reckon the new money is "only half what is needed", adding that more money for social care is "a drop in the ocean".

  19. 'Significant' tax inflation linkpublished at 16:56

    BBC personal finance reporter Kevin Peachey tweets:

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  20. £30bn more spendingpublished at 16:54

    BBC economics correspondent Andy Verity tweets:

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