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. Social care boostpublished at 15:58 Greenwich Mean Time 29 October 2018

    Philip Hammond announces an additional boost for local authorities for social care.

    He says there will be another £650m of grant funding for English councils for 2019-20 and an additional £45m for the disabled facilities grant in England in 2018-19.

    He also pledges a further £84 over the next five years to expand children's social care programmes to 20 further councils.

  2. NHS commitmentpublished at 15:55 Greenwich Mean Time 29 October 2018

    Philip Hammond refers to the already announced £20.5bn increase for the NHS over the next five years.

    "There are many pressing demands on additional NHS funding but few more pressing than the needs of those who suffer from mental illness," he tells the Commons.

    The Chancellor announces that the NHS 10 Year plan will include "a new mental health crisis service", with "comprehensive mental health support available in every major A&E", as well as "children and young peoples’ crisis teams in every part of the country".

    He also promises "more mental health ambulances" and more “safe havens in the community" and a 24-hour mental health crisis hotline.

  3. Five-year spending planpublished at 15:53 Greenwich Mean Time 29 October 2018

    Philip Hammond pledges a full spending review next year, setting out its priorities for public spending.

    He says he will be delivering it when annual growth is 1.2%, but notes that EU negotiations should enable them to have more cash.

    "When our EU negotiations deliver a deal, as I am confident they will … I expect that the 'deal dividend' will allow us to provide further funding for the Spending Review."

  4. Borrowing to fallpublished at 15:48 Greenwich Mean Time 29 October 2018

    Philip Hammond

    Philip Hammond expects government borrowing this year will be £11.6bn lower than forecast at the Spring Statement. It is then set to fall from £31.8bn in 2019/20 to £26.7bn in 2020-21, £23.8bn in 2021/22, £20.8bn in 2022/23 and £19.8bn in 2023-24 - its lowest level in more than 20 years.

    Meanwhile, the Chancellor says national debt peaked in 2016/17 at 85.2% of GDP and then falls in every year of the forecast from 83.7% this year; to 74.1% in 23-24.

    "It means that we meet our target to get debt falling three years early," Mr Hammond says.

  5. 'Real wage growth'published at 15:45 Greenwich Mean Time 29 October 2018

    The chancellor says that with "regular pay growth at 3.1%, its strongest in almost a decade and inflation forecast to average 2% next year, the OBR [Office for Budget Responsibility] is forecasting sustained real wage growth in each of the next five years".

  6. Growth forecasts revised uppublished at 15:43 Greenwich Mean Time 29 October 2018

    Growth going forward will be "resilient" says Philip Hammond, improving next year from the 1.3% forecast in the Spring Statement to 1.6%.

    In 2020, he expects 1.4%, 1.5% in 2021 and 22 and 1.6% in 2023.

    The Treasury tweets this handy chart:

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  7. Brexit funding boostpublished at 15:40

    The chancellor says the country is well funded for Brexit.

    He notes he's already allocated £2.2bn to departments for Brexit preparations, and points out that in the Autumn Budget last year he set aside a further £1.5bn to be allocated for 2019-20.

    "Today I am increasing that sum to £2bn… …and in the coming week the Chief Secretary will announce allocations to individual departments," he adds.

  8. No horrors?published at 15:38

    Philip Hammond quips that the decision to hold the Budget on a Monday rather than a Wednesday as usual means that he has avoided Halloween headlines such as "Hammo House of Horrors".

    "But the truth is, by choosing today, rather than Wednesday, I have not avoided the blood-curdling threats, the anguished wailing, and the strange banging of furniture..."

  9. 'Era of austerity coming to an end'published at 15:36

    Philip Hammond says the era of austerity is "finally coming to an end".

    Assistant political editor Norman Smith tweets:

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  10. He's offpublished at 15:33 Greenwich Mean Time 29 October 2018

    Philip Hammond has started and says this will be a Budget for "hard-working families … who live their lives far from this place ... and care little for the twists and turns of Westminster politics".

  11. Cash bonanza looms?published at 15:31 Greenwich Mean Time 29 October 2018

    Sun political editor Tom Newton Dunn tweets:

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  12. More tax, or wrong sums?published at 15:26 Greenwich Mean Time 29 October 2018

    The government's official forecasts by the Office for Budget Responsibility have been overly pessimistic on government borrowing, which is one reason why Philip Hammond should have more cash to splash in the Budget.

    But why does the OBR keep getting it wrong?

    Paul Johnson, the Institute for Fiscal Studies director, says the lower-than-expected borrowing figures have been driven by the fact that the government has got better at collecting taxes. "It's not that the economy is performing so much better," he adds.

  13. 'Phoney war'published at 15:22 Greenwich Mean Time 29 October 2018

    BBC political editor Laura Kuenssberg tweets:

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  14. Will we be disappointed?published at 15:19 Greenwich Mean Time 29 October 2018

    Thanks to Philip Hammond's promise that austerity is over, many people will want to hear evidence that is the case, says personal finance journalist Sarah Pennells, who set up the savvywoman.co.uk, external site.

    The risk is of course, she warns, is that we could be left disappointed: "We now expect something to make us feel a lot better."

    But if that fails to materialise, many people will be angry, Ms Pennells argues.

  15. Room for manoeuvrepublished at 15:12 Greenwich Mean Time 29 October 2018

    BBC economics editor Kamal Ahmed says lower government borrowing in the year to date means the Chancellor will definitely have "room for manoeuvre".

    "The big question is - what does he use it for?," he asks.

  16. The TUC's viewpublished at 15:08

    TUC general secretary Frances O'Grady tweets:

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  17. Will Hammond have a tipple?published at 15:04

    Unlike any other ministers at any other time, the Chancellor can choose to drink alcohol while delivering the Budget.

    The last Chancellor to do this was Kenneth Clarke, who drank a whisky at the box. From 1997 and the arrival of Gordon Brown, Chancellors have sipped nothing more than mineral water.

    Geoffrey Howe had a gin and tonic, while Nigel Lawson had a white wine spritzer.

  18. Behind the scenespublished at 14:57 Greenwich Mean Time 29 October 2018

    Kamal Ahmed
    Economics editor

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  19. Philip Hammond leaves no 11published at 14:53
    Breaking

    Philip Hammond

    And Budget day has started ... well, almost. Chancellor Philip Hammond has left No 11 after posing for pictures in front of the door with his trusty red briefcase.

    The speech is due to start at 3.30pm.

  20. CBI's investment pleapublished at 14:47

    The CBI's chief economist has been talking to BBC News as we wait for the Chancellor to set off for the Commons.

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