Published: Tue, March 13, 2018
Business | By Kate Woods

Chancellor threatens new tech tax

Chancellor threatens new tech tax

The Chancellor will use his first Spring Statement on Tuesday to call for evidence on how to reduce damaging waste, and the new plastic innovation fund, which is also expected to be announced on Tuesday, say Sky News, is expected to be one of the few spending policies in his statement.

Those forecasts, based on the assumption that Britain would stay in the European Union, saw growth of above 2 percent for each year between 2018 and 2021.

There was further good news when Hammond revised down national debt forecasts to reach a relatively healthy 0.9 per cent of GDP in 2022, down from 1.8 per cent in 2018. Announced in the 2017 Autumn budget, new diesel cars have to meet the Real Driving Emissions limits for nitrogen oxide to stay within their current tax bands.

Expect Mr Hammond to play down the contentious issue of the divorce bill and play up the need to pay down debt.

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And he accused Labour of "relentlessly talking Britain down" with "doom and gloom about the state of the nation".

"And while the budget deficit looks likely to come in nearly £5 billion lower this year than we expected in November, the explanations for this imply smaller downward revisions for future years".

In a consultation paper, published to go with the Spring Statement, the chancellor said he hoped to target the measures in such a way that it did not harm start-ups and growing companies.

The OBR has already upgraded its fiscal forecasts twice over the a year ago, in March 2017 and November, as tax receipts have come in stronger than previously expected.

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It will peak at 85.6% of GDP in 2017-18 then fall to 85.5% in 2018-19, then 85.1%, 82.1%, 78.3%, and finally 77.9% in 2022-23.

The chancellor said the latest estimates, which show public debt as a share of GDP falling for the next five years, showed the country was at a turning point, a decade on from the financial crisis. "Light at the end of the tunnel".

Mr Hammond criticised Mr McDonnell for his "bully boys" remark and later said of Labour's economic approach: "Every now and again the mask slips and we get a glimpse of the sinister ideology that lies beneath, an ideology that would wreck our economy if he ever gets anywhere near the controls".

Mr Hammond said that review would be used to allocate the money to different services in 2020-21 and beyond.

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Mr Hammond announced that London would receive and additional £1.7 billion to deliver 26,000 affordable homes - including homes for social rent, taking the total number to more than 116,000 by the end of 2021/22.

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