'Austerity-easing' Budget facing more scrutiny months away from Brexit

Philip Hammond

Philip Hammond

The government will provide £600m extra for social care in 2019-20, while departments are also set to receive a share of a £500m top-up to funding he announced in last year's budget to help government departments to prepare for Brexit in 2019-20.

Revealing the tax in Parliament, Hammond said that it will be, "carefully created to ensure it is established tech giants - rather than our tech start-ups - that shoulder the burden of this new tax".

We are at a pivotal moment in our European Union negotiations and the stakes could not be higher: Get it right, and we will not only protect Britain's jobs, businesses and prosperity but we will also harvest a double "Deal Dividend", a boost from the end of uncertainty; And a boost from releasing some of the fiscal headroom I am holding in reserve.

Microsoft's United Kingdom director of corporate, external and legal affairs, Hugh Milward, said the company was "digesting what it was that the chancellor announced yesterday", but agreed with Google that "the most important thing is how this influences what the OECD is thinking and how the OECD is going to influence what the chancellor decides to do". They might. There's perhaps a one in three chance of that. Time will tell if the pledges of support for the Northern Powerhouse projects, including rail improvements mainly focuses south of the Pennines, would benefit Cumbria.

Speaking in the Commons on Monday, Philip Hammond said: "A new global agreement is the best long term solution".

The OBR forecasts were broad brush as a disorderly Brexit could have "severe short-term implications for the economy, the exchange rate, asset prices and the public finances".

With Hammond's speech coming on the day before Halloween, Edmund King, AA president, called it a "Tick or Treat Budget", because: "The new £420 million for potholes is an immediate "treat", which has to be spent by the end of April".

The Chancellor said public finances are good.

In a wide-ranging report, Standard & Poor's said a "no-deal Brexit could push the United Kingdom economy into a moderate recession and lower the economy's long-term growth potential".

Of course, if you need help with the above points, or any other matters relating to the recent Budget, please do not hesitate to contact your wealth manager at NW Brown.

Announcing the freeze on spirits, Mr Hammond said: "We can all afford to raise a wee dram to Ruth Davidson on the arrival of baby Finn saving 2p on a pint of beer, 1p on a pint of cider, and 30p on a bottle of Scotch or gin".

The warning undermines government assurances that the £30 billion of extra spending announced in the Budget, most of it for the NHS in England, would carry on regardless of a Brexit deal.

There was no mention of electric cars in the Budget, which surprised some industry experts, given that the topic is such a hot one right now.

And today the OBR confirm Britain's "jobs miracle" is set to continue revising up participation in the labour market, revising down the country's "equilibrium unemployment rate". It said this language was "vague and unambitious" and the United Kingdom should commit to sales of only "genuinely zero emissions" vehicles, and that the date should be brought forward to 2032. On both of these counts, the government has done little.

"The chancellor referred to his proposals as part of setting a timeline for global action and that's always been something that we've supported", O'Donovan told the committee. And the move could also provoke a response from the United States government, given that it would exclusively target USA companies.

King said: "The Government has missed a trick to get fossil fuelled cars off the road as quickly as possible". The tax would only apply to profitable companies, but could be abolished if members of the Organisation for Economic Co-operation and Development (OECD) can agree a formula for taxing internet giants. "The Chancellor could have brought forward this proposal like he had with the personal tax allowance".

Apple Announces the New Mac Mini
Robert Mueller refers plot to make false claims about him to FBI