The Chancellor hailed “a new era” and stated he wanted to “get Britain building.. unleash the power of the private sector… and encourage a nation of entrepreneurs.”
There was positive news for the property market, with the immediate cut in stamp duty on the first £250,000 of a property purchase, instead of £125,000.
First time buyers will be pay stamp duty on homes over £425,000, up from £300,000. Relief for first time buyers has been raised to properties up to £625,000, up from £500,000.
The Chancellor announced reforms to the planning system with a new Bill to be introduced to simplify planning processes. There will also be a sell-off of surplus government-owned land to help boost the supply of homes.
Investment Zones will be introduced, with relaxed planning and tax incentives for commercial and businesses creating new jobs. These are thought to be planned for the West Midlands, Thames Estuary, Tees Valley, West Yorkshire and Norfolk.
There were a number of initatives to encourage business growth. Next year’s planned increase in corporation tax has been cancelled and will remain at 19 per cent. The bonus cap for City bankers has been removed to help “reaffirm the City’s role as a world centre for finance.” There will be an extension of the Enterprise Investment Scheme and pension fund investments will be unlocked to allow investment into targeted growth projects.
Other measures included the basic rate of income tax will be cut from 20p to 19p. The government will also scrap the 45 per cent top rate of tax for higher earners over £150,000 to “attract global talent” and the National Insurance increases proposed for next year will be cancelled.
To help the retail and hospitality sectors, VAT free shopping for overseas visitors will be introduced and the planned duty rate increases for alcohol will be cancelled.