The Budget will make some people’s wallets feel a bit more substantial, while others may be left disappointed.
Here is a look at some of the Budget’s winners and losers:
– People struggling to access affordable credit.
Some borrowers end up paying the “poverty premium” to take out credit as they struggle to access mainstream loans – but the Budget has unveiled plans that could help them.
The Government, working with leading debt charities and the banking industry, will launch a feasibility study to help design a pilot for a no-interest loans scheme early next year.
– First-time buyers.
Measures announced include an extension of stamp duty relief for first-time buyers purchasing shared ownership properties. From April 2021, a new Help to Buy equity loan scheme will run for two years before closing in March 2023.
From April 2019 the National Living Wage will increase from £7.83 an hour to £8.21. The Government has said this will benefit around 2.4 million workers, and is a £690 annual pay rise for a full-time worker.
– People liable for income tax.
The personal allowance – the amount people can earn before they have to start paying income tax – will increase by a further £650 in April 2019 to £12,500. The increase will come a year earlier than planned, and will be maintained in 2020. This means a basic rate taxpayer will pay £1,205 less tax in 2019-20 than in 2010-11.
Meanwhile, the amount people will have to earn before they pay tax at 40% will increase from £46,350 to £50,000 in April 2019. This means that in 2019-20, there will be nearly one million fewer higher rate taxpayers than in 2015-16.
In 2019, fuel duty will remain frozen for the ninth year in a row, saving the average driver £1,000 since 2010. Road users blighted by potholes in their area may also get some relief – as local authorities will receive £420 million to fix potholes on roads and renew bridges and tunnels, and £150 million is available to improve local traffic hotspots such as roundabouts.
– Drinkers of beer, cider and spirits.
The cost of a pint of beer will be 2p lower than if duty had risen by inflation. The freeze also amounts to a saving of 1p on a pint of cider and a 30p on a bottle of scotch or gin.
As well as bringing cheer to consumers, the industry is also toasting the announcement. The British Beer & Pub Association has said it will save brewers, pubs and pub-goers £110 million.
…I will therefore be freezing beer and cider duty for the next year…keeping the cost of beer down for patrons of the Great British Pub ❄️🍻…I will also freeze duty on spirits… ❄️🥃 #Budget2018pic.twitter.com/VMQkHn7DyS
— HM Treasury (@hmtreasury) October 29, 2018
– Nuisance callers.
As part of efforts to tackle nuisance calls, National Trading Standards will receive further funding to extend a project providing telephone call blocking technology to vulnerable people.
Cold calling is a common method used by fraudsters to trick people into handing over their pension money. The Government said it will shortly be implementing legislation to make pensions cold calling illegal.
– Isa savers hoping to be able to put more away.
The adult Isa annual subscription limit for 2019-20 will remain unchanged at £20,000. But for child Isa savers, the annual subscription limit for Junior Isas for 2019-20 will be uprated to £4,368.
Duty rates on all tobacco products will increase by two percentage points above RPI inflation until the end of this Parliament, the Budget documents said.
– Technology giants.
Online tech giants are set to be slapped with a new “digital services” tax amid measures aimed at helping the high street. A 2% UK digital services tax will come into force in April 2020 and is expected to raise £400 million a year.
It will only be paid by profitable companies which generate at least £500 million a year in global revenues, and applies to income which firms generate through providing search engines, social media platforms and online marketplaces.
– Wine lovers.
While beer fans may be happy with Monday’s Budget, wine drinkers may have less reason to raise a glass. The Wine and Spirits Trade Association (WSTA) has estimated that the duty rise by inflation imposed on wine will hike the price of a bottle by 7p on still wines and by an extra 9p on sparkling and fortified wine.
Andy Fyffe, pubs lead at EY, said: “With wine prices already impacted by the decline in sterling, adding 7p to a bottle of still wine and 9p to a bottle of sparkling may encourage wine drinkers to try another tipple of choice.”