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As it happenedended1511372028

Budget 2017 live - key points: Tories pivot to public spending in bid to keep out Corbyn

Follow all the latest updates as Chancellor presents his 2017 Budget

Benjamin Kentish
Tuesday 21 November 2017 12:26 EST
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Budget 2017: Chancellor abolishes Stamp Duty

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Welcome to The Independent’s liveblog with coverage of the response to Philip Hammond’s Budget.

The Chancellor was forced to admit that growth and productivity forecasts had been downgraded, with the Official for Budget Responsibility (OBR) predicting lower growth than at any time in its history.

It comes after the UK’s finances unexpectedly worsened last month after the Office for National Statistics (ONS) said public sector net borrowing – stripping out state-owned banks – jumped by £500m to £8bn in October.

Despite this, Mr Hammond used the Budget to announce a splurge of new investment, including £3bn set aside for preparing for Brexit, an immediate £350m cash boost for the NHS, a £2.5bn investment fund and £500m support for the tech industry. This can partly be seen as a response to Labour's shock performance at the polls earlier this year, which has forced the Tories to do more to address rising anger at inequality, and try to quell support for Jeremy Corbyn.

Follow the 2017 Budget as it happened below

A series of small giveaways had earlier been trailed by the Treasury, including extending discount railcards to 25-30 year-olds from next Spring and tackling overpayments of student loans.

This was a Budget in which Mr Hammond could not afford any major slip-ups. Tory MPs were nervous of a repeat of the excruciating U-turn on a key announcement in the Budget in Spring, where the Chancellor was forced to pull the plug on his plan to raise taxes for the self-employees through increased national insurance contributions after considerable pressure from Conservative MPs.

If there is any repeat of this, Mr Hammond's position in Number 11 will be very precarious indeed.

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Jeremy Corbyn is now responding to the Budget - a tricky job for any Leader of the Opposition given they don't get advance sight of it...

He points out that the target for eradicating the deficit has been consistently moved back. It was initially 2020, it's now 2025. 

Kristin Hugo22 November 2017 13:53
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Corbyn say says three pilot studies to help rough sleepers "simply doesn't cut it".

It is a "disaster" for homeless people, who need action now, says the visibly angry Labour leader while thumping the despatch box. 

Kristin Hugo22 November 2017 13:57
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Some commentators have already downplayed the potential impact of the the abolishing of stamp duty.

“While welcome, abolishing stamp duty is a drop in the ocean given the affordability challenge of getting Generation Rent onto the property ladder,” said Simon Heawood, chief executive and founder of property investment site Bricklane.com.

“The focus on bridging the housing generational gap must lie on the all-important first rung of the ladder – saving up for a deposit. The issue of housing supply and price is important, but looking at measures to support Generation Rent’s ability to get together a deposit is crucial,” he added.

Kristin Hugo22 November 2017 13:59
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Kristin Hugo22 November 2017 14:03
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Kristin Hugo22 November 2017 14:06
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Kristin Hugo22 November 2017 14:08
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Kristin Hugo22 November 2017 14:09
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Experts are queuing up to downplay the impact of the stamp duty cut for first-time buyers.

Jeremy Cook, chief economist at WorldFirst, says:

Focus will naturally fall on the Stamp Duty rabbit but the real headline should be the swingeing cuts to the UK’s growth forecasts.

These represent the weakest expectations on growth over a forecast period in the modern era and probably the largest downgrades since the advent of the Global Financial Crisis. In light of growth upgrades in major, key, trading partner countries, these figures are even more disappointing. Thank god for the tax freeze on spirits, beer and wine because, given these numbers, we’re going to need it.

Kristin Hugo22 November 2017 14:10
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Kristin Hugo22 November 2017 14:12

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