Budget 2018: 15 key announcements from Philip Hammond at a glance

An earlier than expected increase in the income tax threshold and the higher rate threshold were the highlights of the Chancellor's Budget.

Monday, 29th October 2018, 5:45 pm
Updated Monday, 29th October 2018, 5:48 pm

Philip Hammond said the personal allowance, the income at which workers begin to pay tax, would increase to £12,500 from April, with the amount when the top rate of income tax is applied rising to £50,000 at the same time. They had been due to come into effect in April 2020.

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Alongside this were measures including the confirmation of a Digital Services Tax aimed at online giants making huge profits, plus cash for house building, counter-terrorism policing and the Ministry of Defence.

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Chancellor of the Exchequer Philip Hammond. Picture: Getty Images

Here are the main points at a glance:

- Decisions announced in this Budget mean an additional £950 million for the Scottish Government,

- Income tax personal allowance to rise to £12,500 from April 2019

- Higher rate income tax threshold to rise to £50,000 at the same time

- Both to be indexed to inflation from 2021/22

- The Private Finance Initiative (PFI) and successor PFI2 abolished for future Government projects

- Digital Services Tax to be introduced in April 2020 targeting online giants with global revenues of more than £500 million

- Fuel duty frozen for the ninth year in a row

- Counter-terrorism police to get an extra £160 million funding for 2019/20

- An extra £1 billion over five years for the Universal Credit benefit programme

- Funding for Government departments’ Brexit preparations increased from £1.5 billion to £2 billion

- New tax on the manufacture and import of plastic packaging which is less than 30% recycled

- Duty on beer, cider and spirits frozen for a year

- Tobacco duty escalator to continue to rise at inflation plus 2%

- Remote Gaming Duty to increase to 21% for online gambling on “games of chance” from 2019

- An extra £1 billion for the Ministry of Defence to boost cyber and anti-submarine warfare programmes to the end of 2019