Budget day 2018: Income Tax cuts and more money for veterans

Chancellor Phillip Hammond has presented the Budget for the financial year which will start in April 2019. 

Around 32 million Britons are in line for an income tax cut up to £860 each as the basic and higher tax thresholds are to go up. 

 

Income tax cuts

The tax-free personal allowance will increase to £12,500 in April 2019. The higher rate tax threshold will rise to £50,000 at the same time. 

Around 32 million Britons are in line for an income tax cut up to £860 each as the basic and higher thresholds are to go up ahead of schedule. Basic rate taxpayers will be £130 a year better off, while those earning over £50,000 will keep an extra £860. 

The National Living Wage will rise in April 2019 from £7.83 to £8.21. 

£10 million for veterans with mental health needs

£10 million will go to the Armed Forces Covenant Trust to help veterans who have mental health needs. Also, up to £8 million will be spent to help ‘with the cost of repairs to village halls, Miners’ welfare facilities and Armed Forces organisations’ facilities’. 

More money for the MoD

The Ministry of Defence will receive an extra £1 billion for this year and next. This increase will fund, among other things, the ongoing at-sea deterrence. 

Money for apprenticeships 

The chancellor also announced the government will help businesses take on more apprenticeships. Large businesses will be able to invest up to 25% of their levy to accommodate apprentices in their supply chains. The amount some firms have to pay will be halved, from 10% to 5%. The government will pay the rest. This scheme is expected to cost around £695 million. 

Money for schools and… potholes

Primary and secondary schools will receive an in-year cash injection to buy essentials. Primary schools will receive £10,000 on average and secondary schools £50,000 on average. The measure will cost £400 million, which is £20 million under the £420 million made available immediately to help local councils tackle potholes. 

Additionally, fuel duties will be frozen for a ninth successive year. 

 

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