Spring Statement: What were the key points? | Allcharts.co.za

March 13, 2018 2:29 pm
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Philip HammondImage copyright EPA

Chancellor Philip Hammond has updated Parliament on the state of the economy and the nation’s finances. Here are the main points from his Spring Statement.


  • Growth forecast for 2018 revised upwards from 1.4% to 1.5%
  • 1.3% growth forecast for 2019 and 2020 left unchanged
  • Inflation forecast to fall from 3% now to 2% by end of year
  • Wages expected to rise faster than prices over the next five years

Public finances

  • Government forecast to borrow £45.2bn in 2017-8, £4.7bn lower than predicted in November
  • Borrowing forecast to fall every financial year to £21.4bn in 2021-22
  • Debt as a share of GDP to fall from 85.6% in 2017-8 to 85.5% in 2018-9
  • Ratio set to drop to 85.1% in 2019-20, 82.1% in 2020-21 and 78.3% in 2021-22
  • Cost of debt interest payments remains about £50bn a year


  • £1.5bn allocated so far to departments to prepare for Brexit in March 2019
  • £1.67bn given to London to start building a further 27,000 affordable homes by end of 2021-22
  • Budget for Housing Growth Partnership to be more than doubled to £220m
  • The National Living Wage will rise, as previously announced, to £7.83 an hour in April


  • 60,000 first-time buyers have benefited from stamp duty holiday in November’s Budget
  • Consultation on reducing tax on the least polluting vans
  • Consultation on tax changes to discourage use of single-use plastic, including takeaway boxes and disposable cups
  • £20m for firms businesses and universities to research ways to reduce plastic’s environmental impact
  • Consultation on a new VAT collection mechanism for online sales
  • Government sets out ideas for “fairer” taxation of multinational digital businesses
  • Consultation on extending current training tax relief to self-employed people and employees


  • Next revaluation of business rates to be brought forward by one year to 2021
  • English cities invited to bid for remaining £840m from regional transport fund
  • £95m to be given to 13 areas for rollout of full-fibre broadband
  • Consultation launched on the role of cash in the new economy, including future demand for 1p and 2p pieces and £50 notes