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. Asian shares in sell-off modepublished at 07:15 Greenwich Mean Time 29 October 2018

    JapanImage source, Getty Images

    Chinese stocks were mainly lower on Monday after Wall Street stumbled on Friday.

    In China the Shanghai Composite is down more than 2%, although Hong Kong's Hang Seng index is up 0.2%.

    Japan's benchmark Nikkei 225 has edged 0.2% lower while South Korea's benchmark Kospi is down 1.5%.

  2. Keeping bond vigilantes at baypublished at 07:11 Greenwich Mean Time 29 October 2018

    Today Programme
    BBC Radio 4

    HammondImage source, Getty Images

    Russ Mould, investment director at AJ Bell, says that Chancellor Philip Hammond is not being punished by the markets for his spending plans so far.

    That might mean he plays it fairly safe when it comes to public spending announcements in today's Budget.

    Mr Mould points out that Argentina has 60% borrowing costs compared with the UK which has borrowing costs of 1.4%, as measured by the 10-year benchmark bond.

    "He doesn't want to be seen to be too free and easy with money because the bond vigilantes will come back and start increasing his borrowing costs."

  3. What do young people want from the Budget?published at 07:05 Greenwich Mean Time 29 October 2018

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  4. It's all about infrastructurepublished at 07:00 Greenwich Mean Time 29 October 2018

    Today Programme
    BBC Radio 4

    Amazon warehouseImage source, Getty Images

    The Chancellor could announce new taxes for tech giants like Amazon in today's Budget, analysts have said - but that could have knock-on effects.

    As manager of East Midlands Airport, Karen Smart, points out, e-commerce has been very good for UK jobs.

    The airport has been expanding rapidly because of its freight operation, driven in large part by a new distribution centre from Amazon.

    "You can look out the window and see DHL, which has doubled the size of its operation, and UPS to my right with its large distribution centre of 700 acres," she told the Today programme.

    "That’s going to double the number of jobs from 8,000 today to around 16,000 and even 20,000 by 2030, so it's really prosperous for the region".

    So what does she want from the Budget? "What's really key in getting people to those jobs is improving the infrastructure... so local people can get to local jobs".

    That means improving rail links long before the high speed network HS2 arrives.

  5. Brazil elects controversial far-right candidate for presidentpublished at 06:48 Greenwich Mean Time 29 October 2018

    Jair BolsonaroImage source, Getty Images

    In case you missed it, far-right candidate Jair Bolsonaro has won a sweeping victory in Brazil's election.

    Mr Bolsonaro won 55.2% of the votes cast against 44.8% for Fernando Haddad from the left-wing Workers' Party, the Brazilian electoral authority reported.

    It marks a rejection of the Workers' Party, which governed Brazil between 2003 and 2016, and under which Brazil suffered a recession and corruption.

    The election was divisive, with Bolsonaro's remarks alienating many Brazilians. Here are some of the views he has expressed over the years, as reported by Reuters, external.

  6. Startling or safe?published at 06:36 Greenwich Mean Time 29 October 2018

    BBC Radio 5 live

    Will there be any surprises from the Chancellor in this year's Budget? Laura Suter, a personal finance expert at AJ Bell thinks not.

    "They've got Brexit around the corner, and I think he wants things to be 'steady as she goes'," she tells Wake up to Money.

    "And as he said yesterday, if there is no deal then he will have to take another line."

  7. Chancellor to unveil new 50p - reportpublished at 06:31 Greenwich Mean Time 29 October 2018

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  8. Reducing VAT threshold 'would be a mistake'published at 06:22 Greenwich Mean Time 29 October 2018

    BBC Radio 5 live

    There are suggestions the Chancellor will reduce the revenue threshold at which firms pay VAT, from £85,000 to £43,000, exposing more small businesses to the tax.

    Surren Thiru, head of economics and business finance at the British Chambers of Commerce, told Wake up to Money this would be a big "misstep" at a time when firms are struggling with other overheads like business rates.

    It's not just about the cost, he adds. "What we hear from businesses is that some of the administrative burdens of becoming VAT registered is a real concern."

    The danger of reducing the VAT threshold is that firms will have less incentive to grow, he adds.

  9. Business rates relief on the cards?published at 06:16 Greenwich Mean Time 29 October 2018

    BBC Radio 5 live

    A high streetImage source, Getty Images

    Over the weekend the Chancellor hinted that there could be some business rates relief for small firms in the Budget.

    Sally Longdon, who runs clothes shop Stick and Ribbon in Nottingham, says she doesn't pay business rates currently because her premises is too small.

    The problem is, there is "no incentive for her to grow" and move to bigger premises, because as soon as she does she'll be hit by a big tax bill.

    She says VAT could be another issue for the firm (the Chancellor is tipped to make more small firms pay the tax) particularly at a time when small High Street retailers are suffering from the consumer spending slowdown.

  10. Budget 2018: What we know alreadypublished at 06:07 Greenwich Mean Time 29 October 2018

    Most of Mr Hammond's plans are kept under wraps until he presents it to MPs, but some things have been announced ahead of the speech, including:

    • An increase in spending on mental health services in England by at least £2bn a year
    • A £30bn package for England's roads, including repairs to motorways and potholes
    • £900m in business rates relief for small businesses and £650m to rejuvenate high streets
    • £60m on planting trees in England
    • Another freeze in fuel duty
  11. Good morningpublished at 05:52 Greenwich Mean Time 29 October 2018

    HammondImage source, Getty Images

    Good morning and welcome to a Business Live Budget special.

    The Chancellor doesn't give his big speech until 15:30, but we'll be bringing you news and views throughout the day as well as minute-by-minute updates as his spending plans are announced.

    So what can we expect from this year's Budget, the first to be held on a Monday since 1962?

    Analysts suggest the Chancellor faces a tough balancing act after the Prime Minister declared an end to austerity was "in sight" at the Conservative Party conference.

    On the one hand he faces calls to boost public spending on things like the NHS, on the other economic growth has slowed and Brexit is looming. As Mr Hammond admitted yesterday, if no deal is struck with the EU, his 2018 Budget will need to be reworked.

    For good primers on what may lie ahead, check out these pieces from economics editor Kamal Ahmed and the BBC politics team.

    And for details on what we know already about Budget 2018, try this article by personal finance correspondent Kevin Peachey.