Budget 2017: Updates and analysis

The Chancellor has announced £2 billion will be spent on social care in England over the next three years in his first ever Budget.

Philip Hammond said an extra £100 million would be allocated for GPs to work in A&E departments to help cut waiting times as he delcared the Tories the "party of the NHS".

But he was accused of breaking a key Tory manifesto pledge when he announced National Insurance contributions for the self-employed were to rise.

Labour's Jeremy Corbyn said the Chancellor had produced a "Budget of utter complacency" which ignored the state of the economy, public services and the lives of millions of people.

Other key points from the Budget included:

  • Most pubs are to be given a £1,000 discount on business rates as part of a £435 million package aimed to ease the burden on small businesses
  • National Insurance contributions paid by self-employed to increase by 1% to 10% in 2018 and 11% by 2019
  • A clampdown worth £820 million on tax avoidance, including action to stop businesses converting capital losses into trading losses
  • Councils to be given a £300 million "discretionary relief" fund to give to hard-pressed firms in their areas
  • £5 million "returnship" fund to enable people to go back to work after a career break
  • Free childcare for three and four-year-olds doubled to 30 hours a week

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Corbyn blasts 'Budget of utter complacency'

Labour leader Jeremy Corbyn has accused the Chancellor of producing a "Budget of utter complacency" which ignored the state of the economy, public services and the lives of miillions of people.

Mr Corbyn said Philip Hammond had showed "utter complacency about the crisis facing our public services and (was) complacent about the reality of daily life for millions of people in this country."

He told MPs that Mr Hammond was "entirely out of touch with that reality of life for millions".

"This morning, over one million workers will have woken up not knowing whether they'll be working today, tomorrow or next week," he said.

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Analysis: Social care given £2 billion boost

Simon Wagman is a partner at Blick Rothenberg, an accounting, tax, and advisory practice.

Simon said: "The Chancellor has announced an additional £2 billion to social care in England over the next three years to allow local authorities to plan now to provide security and dignity for all in their old age.

"Hammond has identified a significant burden on the NHS, with the elderly occupying hospital beds and the need to provide greater security for the older people in our communities.

"This further commitment provides funding for local authorities which should create capacity, freeing up space in hospitals.

"Further plans and talks of a strategic approach for how to deal with the ageing population should further assist in this area."

Budget 2017: £2bn extra to be spent on social care

An extra £2 billion will be spent on social care in England over the next three years, including £1 billion available in 2017/18, Chancellor Philip Hammond has announced.

Options for social care funding to be considered in an upcoming green paper will not include a "death tax", said the Chancellor.

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Analysis: New funding for free schools

Simon Wagman is a partner at Blick Rothenberg, an accounting, tax, and advisory practice.

Simon said: "The Chancellor's announcement of funding for 110 new free schools on top of the current commitment to 500 free schools is a further indication of planning for a younger generation's future.

"As part of the government's commitment for growth and increasing employment for all, Hammond has announced a significant commitment to further increasing the number of free schools for ensuring all children have relevant schooling and education for their own needs.

"This, coupled with apprenticeships and 'T-Levels' will ensure all young people entering the workforce will be suitably skilled and with suitable experience to benefit future employers."

Tax free dividend allowance to be reduced

The tax free dividend allowance is to be reduced from £5,000 to £2,000 from April 2018, Chancellor Philip Hammond has announced.

ITV News Economics Editor Noreena Hertz said the measure "won't directly impact those on low incomes so should be pretty popular".

However ITV News presenter Tom Bradby pointed out that the change "won't be popular with businesses".

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