How does Uncle Phil's UK budget impact the millennial of today?
Bad boy Hammond has announced his financial plans for the UK going forward into 2018.
Here are my 5 top ways the Autumn budget could affect your millennial purse strings…
1. The Millennial railcard
A new railcard for 26-30 year olds has been confirmed for 2018. The deal is 1/3rd off travel for the price of £30 a year! Here’s the catch, the discount is for MOST off-peak and advance tickets, however, it can’t be used on season tickets - which means it doesn’t provide relief to January 2018’s 3.6% price hike…eurgh….I know!
2. Electric and driverless cars
The UK will be setting out rules so that self-driving cars can be tested without a safety operator. £100 million will go towards helping people buy batter electric cards. What’s also cool here is that the government will also make sure all new homes are built with the right cables for electric car charge points - hello Tesla!
3. Mo money mo problems
This isn’t groundbreaking, however, we will have a little bit more disposable income every single month. The amount of £££ we can earn before we get a call from Tony The Taxman will rise from £11,500 to £11,850 - commencing in April 2018. This means £350 extra in tax-free cash every single year! Notably, the threshold at which you pay a higher rate of income tax will rise from £45,000 to £46,350.
4. Booking your trip away anytime soon?
Dr. H has also announced some relief for short-haul air passengers, as duty rates will remain frozen. The long-haul rate for economy passengers shall be frozen, however, in Robin Hood style, the rates for premium economy, business and first class will increase by £16. The Telegraph have nicely coined this term the 'Lewis Hamilton tax', with private jet owners also experiencing a similar slap in the face! These changes will begin from April 2019, so chill homie…no need to panic just yet.
5. Say hello to your first home
Stamp duty will be abolished IMMEDIATELY for first-time buyers purchasing properties worth up to £300k. For Londoners, there is a bit more in it for you - The first £300k of any property UP TO a value of £500k will be exempt from stamp duty. The only cost incurred will be on the remaining £200k! Stats released by the BBC show around 95% of all first-time buyers will benefit, with around 80% actually paying ZERO stamp duty. More money left for furnishings and that flat screen tv your partner won’t let you buy for the bedroom! Am I a first-time buyer you ask? If you have owned a property or even part-owned one before…then NO YOU ARE NOT!
I think Hammond used the stamp duty trick simply to win over millennial voters. Daddy H really knows how to pluck on those heart strings! The government says young people will save £1,660 on average - this doesn’t set the world alight, whilst experts believe the move could prove counter-productive and actually increase house prices as a result - take that with a pinch of salt!
The chancellor also announced that duty on most types of alcohol will be frozen. However, ‘cheap, high strength, low quality products’ such as white cider have not been given any sympathy!
Finally, something which hasn't been mentioned here is....the £2.8bn in emergency cash which has been made available for the NHS - notably, they can only tap into £350m of it this year. The NHS’s Simon Stevens demanded £4bn more, which goes back to what we are all thinking….is the above amount really enough? Nurses are also way overdue a pay rise, however, additional funding for this is based on outcome of further talks…so no real promise...eurrrgh!! Interestingly….not one mention of social care in his 7,704 word speech!