Encouraging innovation in regulated utilities – The government will launch a consultation on how to encourage greater innovation in the utilities sectors. Duty on most wine and higher strength sparkling cider will rise by RPI inflation from 1 February 2019. [footnote 35] At Autumn Budget 2017, HM Treasury launched its first-ever Balance Sheet Review (BSR) aimed at improving the returns on the government’s assets and reducing the costs of its liabilities. The government will now introduce a UK digital services tax. Increasing the capacity of the UK Regulators Network – Regulated sectors face shared challenges such as adapting to technological change, delivering future infrastructure and protecting vulnerable consumers. This stronger starting fiscal position coupled with higher forecast levels of employment has improved the fiscal outlook in every year of the forecast. There will be no changes to the VAT or APD regimes in Northern Ireland at this time. ↩, ‘NHS Annual report and accounts 2017/18’, NHS Resolution, July 2018. [footnote 51] Freezes to fuel duty for the ninth successive year save the average driver a cumulative £1,000 by 2020. ↩, ‘Looking ahead – developments in public sector finance statistics: 2018’, ONS, July 2018 and ‘Managing fiscal risks: government response to the 2017 Fiscal risks report’, HM Treasury, July 2018. (22), Entrepreneurs’ Relief: minimum qualifying period – To support longer-term business investments, from 6 April 2019 the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 months to 24 months. This has created a stronger and fairer economy – helping people into work and cutting taxes for families and businesses, while also reducing the deficit and getting debt falling. [footnote 53] The Budget reaffirms the government’s commitment to ensuring that everyone, businesses and individuals, pay their fair share. Updated November 21, 2018. Excluding a broadly fiscally neutral change in the treatment of Value Added Tax (VAT) refunds by the ONS, receipts are higher by £7.4 billion in 2018-19 and £14.1 billion by 2022-23. The government is backing business and entrepreneurship by increasing access to finance for private sector investment and helping people who want to start and grow businesses. The OBR has revised down its forecast for the contribution of net trade to GDP growth in the near term, although it still expects net trade to make a positive contribution to GDP growth in 2018 of 0.2 percentage points. [footnote 24] The welfare cap, which was designed to improve Parliamentary accountability of welfare spending, was reset at Autumn Budget 2017, following the OBR’s judgement that the government successfully met the terms of the previous welfare cap set at Autumn Statement 2016. The government’s balanced approach to managing public finances means that the Budget can also provide additional investment in vital public services now, as well as taking action to improve living standards by increasing take-home pay and supporting consumers to make their money go further. Thereafter, business investment is forecast to grow by around 2.1% a year. Changes to the welfare system since 2010 have brought welfare spending back under control for the first time in decades. Personal Allowance and higher rate threshold – The Budget announces that the government will meet its commitment to raise the PA to £12,500 from April 2019, one year earlier than planned. The north east area of the country was struck by a tsunami causing their country to endure financial issues. To ensure a coherent approach, the government will consult on both of these together in the coming months. Any change in the government's fiscal policy affects the economy as well as individuals. ↩, ‘Action for Roads’, Department for Transport, July 2013; ‘Investing in Britain’s future’, HM Treasury, June 2013. 2018 … A one-click delay repay system will be introduced as a requirement for future rail franchises and will be available to those passengers with advance purchase and season tickets. Certain key economic policies are devolved, and the UK government will continue to work closely with the devolved administrations to deliver the maximum benefit for everyone across the UK. T levels – The government will provide £38 million of capital funding to support implementation of the first three T levels in 2020 across 52 providers. It will aim to ensure that policy issues are considered across departmental boundaries, and that performance and outcomes achieved for the money invested in public services are tracked systematically. Fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. ↩, ’Debt management report 2018-19’, HM Treasury, March 2018. The tools of contractionary fiscal policy are used in reverse. It is anticipated that £77.1 billion (79.1%) of total issuance will be sold by auction in 2018-19, and £18.9 billion (19.4%) will be sold by syndication. The government’s revised financing plans for 2018-19 are summarised in Annex A. Source: Office for Budget Responsibility and HM Treasury calculations. The policy panel was preceded by a presentation of the EFB's Annual Report 2017. Industrial Energy Transformation Fund – As part of the Industrial Strategy, the government will establish an Industrial Energy Transformation Fund, backed by up to £315 million of investment, to support businesses with high energy use to transition to a low carbon future and to cut their bills through increased energy efficiency. The government will respond to the review in full in February 2019. (34). The UK continues to be one of the top ten countries in the world for the competitiveness of its economy and remains an attractive destination for inward investment. Northern Powerhouse Rail – Northern Powerhouse Rail will transform the economic geography of the North, connecting cities with faster, more frequent services to boost growth and improve the experiences of passengers across the region. role of fiscal policy. [footnote 55] The government will also meet its commitment to increase the HRT to £50,000 from April 2019, one year earlier than planned. Budgets for mental health services will grow as a share of the overall NHS budget over the next 5 years. 2. Englisch-Deutsch-Übersetzungen für fiscal year im Online-Wörterbuch dict.cc (Deutschwörterbuch). This will make sure people can leave hospital when they are ready, into a care setting that best meets their needs. The British Business Bank, which started operating in 2014, is the government’s UK-wide economic development bank. Offshore tax compliance strategy – The government will publish an updated offshore tax compliance strategy. (71), Regulation 38 – The government will introduce stricter rules for how and when adjustments to VAT should be made following a reduction in price. Local councils can also use it to improve their social care offer for older people, people with disabilities and children. The government has already taken action to help secure a stable system of social care in England. To test their potential, the Digital Catapult will run a series of DLT Field Labs, working with businesses, investors, and regulators in a range of areas, including in construction and the management of goods in ports. VAT grouping – The government will legislate in Finance Bill 2018-19 to extend the eligibility to join a VAT group to certain non-corporate entities. Global growth remained solid in the first half of 2018, with G20 GDP growth of 1.0% in Q2 2018, up from 0.9% in the previous two quarters. 214 High Street, Normally at this stage of the economic cycle, the government would expect to be running either a balanced budget or even a surplus. The savings will be reinvested in an Industrial Energy Transformation Fund, to support significant energy users to cut their energy bills and transition UK industry to a low carbon future. Artificial Intelligence and data-driven innovation – The government has already taken action to ensure the UK is at the forefront of emerging digital technologies, including through the Industrial Strategy Artificial Intelligence (AI) and Data Grand Challenge, and an AI sector deal of up to £950 million. [footnote 46] Through the Defence Estates Optimisation Programme and other activity, the MOD aims to reduce the size of its built estate by 30% by 2040. Accelerating housing delivery – Alongside the Budget, Sir Oliver Letwin has published his independent review of the gap between housing completions and the amount of land allocated or permissioned. 1. the prohibition of monetary financing (Article 123 of the Treaty on the Functioning of the European Union), 2. the prohibition of privileged access to financial institutions (Article 124 of the Treaty on the Functioning of the European Union), 3. the no-bail-out clause (Article 125 of the Treaty on the Functioning of the European Union), 4. the fiscal provisions to avoid exc… Soft Drinks Industry Levy (SDIL) – The government will legislate in Finance Bill 2018-19 to make the SDIL a common duty with the Isle of Man. Quarterly movements can be volatile and on a more stable quarter-on-year basis, productivity grew by 1.4% in the year to Q2 2018 – its fastest quarter-on-year growth rate since Q4 2016, but remaining below its average prior to the financial crisis of 2.2%. In addition, a further £440 million will be made available to the city regions shortlisted for competitive funding. ↩, In addition, the government has made provision for NHS pension costs until 2023-24, which will be adjusted in line with the confirmed Superannuation Contributions Adjusted for Past Experience (SCAPE) rate change. This follows consultation and the roll-out of reform in the public sector. measures taken by the government in the Budget, and described in Chapter 2, increase borrowing by £1.1 billion in 2018-19 and by £18.8 billion in 2022-23. It also takes action to support high streets as they evolve, supporting a crucial part of local economies. The government will also improve the customer experience for businesses accessing online government information and services. Borrowing and debt are now forecast to be lower in every year than at Spring Statement, and headroom against the fiscal mandate has been maintained at £15.4 billion in the target year. [footnote 40] (79). The need for fiscal discipline continues as, despite the improvement, debt currently remains too high at over 80% of GDP or around £65,000 per household. Following extensive work by HM Treasury, the Financial Conduct Authority (FCA) and the Bank of England, the Cryptoassets Taskforce report will be published alongside the Budget. Housing Infrastructure Fund – The government will invest £291 million from the Housing Infrastructure Fund to unlock over 18,000 new homes in East London through investment in the Docklands Light Railway. (66), Individual Savings Account (ISA) annual subscription limits – The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. School equipment and maintenance uplift – The Budget provides schools across England with £400 million this year to spend on their equipment and facilities. In response to feedback on Universal Credit, the implementation schedule has been updated: it will begin in July 2019, as planned, but will end in December 2023. [footnote 28] The Budget confirms the cash allocations announced in June. The OBR’s forecast for trend average hours has also been revised down slightly, which partly offsets this effect. The strength of the jobs market in the last 8 years means that over 3 million more people are in work, and unemployment is lower in all regions and nations of the UK than in 2010. This includes: Up to £121 million for Made Smarter to support the transformation of manufacturing through digitally-enabled technologies, such as the Internet of Things and virtual reality, Up to £78 million for the Stephenson Challenge, supporting innovation in electric motor technology, making vehicles lighter and more efficient than ever before, Quantum technologies – The government will invest a further £235 million to support the development and commercialisation of quantum technologies, including up to £70 million from the Industrial Strategy Challenge Fund, and £35 million to support a new national quantum computing centre. Westminster Ceremonial Streetscape Project – The government will provide £5 million for the Westminster Ceremonial Streetscape Project to improve security and better manage traffic. It will include £55 million for heritage-based regeneration, restoring historic high streets to boost retail and bring properties back into use as homes, offices and cultural venues. Apprenticeships – The government will introduce a package of reforms to strengthen the role of employers in the apprenticeship programme, so they can develop the skills they need to succeed. (57), Fuel duty – Fuel duty will be frozen for a ninth successive year saving the average driver a cumulative £1,000 by April 2020,[footnote 63] compared with what they would have paid under the pre-2010 fuel duty escalator. Tax treatment of social security income – The government is legislating to confirm the income tax treatment of nine new and existing social security benefits. (45, 46). Employment is at a near record high and real wages are rising. This will be effective from July 2020, and benefit around 1.1 million claimants. At the same time, the prices statistics landscape has evolved. (9). In January 2018, Congress enacted a bill to guide spending for the next two years. In 2017, the current account balance narrowed to a deficit of 3.7% of GDP from 5.2% in 2016. Tees Valley – The government is supporting local growth in the Tees Valley with plans for a Special Economic Area covering the South Tees Development Corporation (STDC) site and up to £14 million in funding for the STDC, the first Mayoral Development Corporation outside of London. It sets the clear ambition of creating highly paid and highly skilled jobs, announcing further details on the National Retraining Scheme and action to increase the uptake of apprenticeships. The sale generates net receipts of £1.27 billion,[footnote 49] £170 million above the forecast at Spring Statement. Tweet . (16). This will reduce administrative burdens on UK employers with effect from April 2020. Making it easier to claim compensation – The Budget confirms a more streamlined process for compensating passengers affected by rail delays. The OBR has not attempted to predict the precise outcome of negotiations with the EU. Features: - Fully updated and revised to include all of the core changes brought about with the Finance Act 2018. [footnote 93] The government’s objective is for the NLW to reach 60% of median earnings by 2020, subject to sustained economic growth. [footnote 78] The government will provide £15 million to charities and others to distribute this surplus food. [footnote 22] In doing so, the report provides a mechanism for Parliament and the public to assess the government’s strategies for managing these risks, and hold it to account for their implementation. For shorthand we will speak of the financial crisis of 2007/09 though its effects clearly impose serious economic problems to the real sector, thereby producing the ‘great recession’. Strengthening the overseas network in Europe – To provide enhanced support to UK businesses, the Department for International Trade will expand their network of advisers in Europe. ↩, Written Ministerial Statement (HCWS127), Rt Hon Elizabeth Truss MP, 12 September 2017. The UK has run a budget surplus in 33 (or 46%) of the last 71 years, which is as far back as comparable data go. Hand rolling tobacco will increase by an additional one percentage point. It makes finance markets for smaller businesses work more effectively, allowing those businesses to prosper, grow and build UK economic activity. The responses to the call for evidence did not provide a clear option for reform. Budgeting totals are shown including the Office for Budget Responsibility (, 2 At Spending Review 2015, the government set departmental spending plans for resource. 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