The 2017 autumn budget – what does it mean for you?

In short, today’s budget saw economic growth forecasts revised from 2% to 1.5% in 2017 and further drops from original forecasts in subsequent years. Government borrowing deficit figures have also been revised and will reduce at a slower pace. However £3bn has been set aside to ease the transition into Brexit and there’s an extra £2.8bn for the NHS, although this falls short of the requested 4bn. The Living Wage will rise to £7.50 an hour and schools are being given incentives to encourage A level Maths students and employ Science teachers. Those buying new diesel cars will be discouraged with an increase in tax although fuel duty has remained frozen for the eighth year. Duty on spirits, wine and beer has been frozen although there is a new tax band for ‘white cider’ with an alcohol content of between 6.9 and 7.5%. Those aged 26 to 30 will benefit from saving a third off a railcard.

The big news, however, is on housing measures. Philip Hammond said today that he wants ‘to take action to help young people who are saving to own a home’ and slashed stamp duty at various levels whilst announcing a variety of packages to combat housing concerns. Funding is also being set aside to help those in rented accommodation and on lower incomes.

first time buyers

A summary of housing measures

  • 10bn into help to buy equity loan to help those saving for a deposit
  • Stamp duty abolished for first time buyers seeking homes up to £300,000
  • Stamp duty up to £300,000 also abolished on homes costing up to £500,000 in high cost areas
  • 8bn in financial guarantees to help with private house building
  • £630m to go to a ‘small sites fund’
  • £2.7bn to go to the housing infrastructure fund
  • £1.1bn for urban regeneration
  • 5 new garden towns announced
  • £28m on 3 new housing schemes in Manchester, Liverpool and the West Midlands aimed to halve rough-sleeping by 2022 and eliminate it by 2027
  • 1m new homes in the Cambridge, Milton Keynes, Oxford area by 2050
  • 100% council tax premium on empty properties
  • Review into speeding up planning permission
  • £125m in rent funding targeting those on a low income
  • £1.7bn will go towards a ‘transforming cities fund’
  • £1.5bn to help remove the 7 day wait for universal credit with those newly claiming housing benefit to wait no longer than 2 weeks

Should you require any advice on mortgages or matters detailed in the budget, please contact us and one of our expert, friendly advisors will get back to you.