Chancellor Philip Hammond presented his first and last Spring Budget against a backdrop of economic resilience since the Brexit referendum last summer. It came amid heightened uncertainty as the government prepares to invoke Article 50 to leave the EU.
Read our summary of the Budget announcements here
Chancellor Philip Hammond is presenting his first Autumn Statement to the House of Commons today, setting out the Conservative government’s plans for taxes, spending and borrowing as the UK prepares for Brexit.
The Bank of England has cut interest rates for the first time since 2009, as it calibrates its response to the Brexit vote.
The BoE also boosted its quantitative easing programme, expanding its bond buying to the corporate debt market.
BoE in 25 bps cut, taking benchmark rates to 0.25 per cent
BoE will expand QE with an extra £70bn
Bank will also extend QE to buy corporate bonds
Mark Carney calls Brexit vote a “regime change”, expects unemployment to rise
MPC votes 9-0 for rate cut, 6-3 for QE expansion
David Cameron is at his final EU summit in Brussels today, where he vowed that the UK would not turn its back on its European allies.
But while German leader Angela Merkel wants to ensure the UK is given time to decide how to exit, the European Parliament is pushing for a swift end to uncertainty.
Back in the UK, despite overwhelmingly losing a vote of no-confidence from his fellow Labour MPs, Jeremy Corbyn has refused to step down as leader of the opposition.
The Tory leadership battle is underway, with Johnson and May the frontrunners. Work and pensions secretary Stephen Crabb is also in the frame.
George Osborne warns of “prolonged economic adjustment”, says spending cuts and tax hikes needed
Sterling edges back after hitting a 30-year low on Monday, stocks bounce
Jeremy Corbyn has lost a vote of no confidence vote from his fellow Labour MPs
S&P downgrades the UK two notches, stripping the country of its final AAA rating
Nicola Sturgeon has launches a diplomatic drive to secure Scotland’s post-Brexit place in the EU
You can read yesterday’s coverage here.
Vist the current political and market fallout live blog
The UK has voted to leave the EU after a bitter and divisive campaign.
Prime Minister David Cameron has said he will resign by the time of the Conservative party conference in October.
Boris Johnson has said that the British people “have spoken up for democracy”. The EU was “a noble idea for its time,” he said. “It is no longer
right for this country.”.
Financial markets across the world are down sharply. Sterling has plummeted and banking stocks are taking a heavy beating in early trading.
Bank of England govenor Mark Carney has said they “will not hesitate to take any additional measures” to ensure monetary and financial stability.
First Minister of Scotland Nicola Sturgeon has she will begin to prepare the legislation for a new vote on Scottish independence
- It is a Leave victory – see our interactive results page
- Most of the country has turned against the EU with only London, Scotland and Northern Ireland delivering big wins for Remain.
- Turnout was 72.%, with 16,141,241 cast in favour of Remain and 17,410,742 in favour of Leave
- Prime Minister David Cameron has said he will resign and that the new PM should be the one to decide when to trigger Article 50.
- The financial markets are in turmoil, sterling has fallen dramatically and volatility is hitting other major currencies. The Euro is suffering its worst day ever against the dollar. Banking stocks are particularly hard hit.
- The Bank of England has said it will “take all necessary steps to meet its responsibilities for monetary and financial stability.” Both the BoE and the ECB has said it is ready to provide additional liquidity if needed
- Leave campaigners Boris Johnson and Michael Gove have said informal negotiations will now start on the exit.
- Nicola Sturgeon confirms preparations for a new Scottish independence referendum
George Osborne’s eighth Budget comes at a time of slowing growth and with the government split over Europe. The chancellor needs to show he still has a grip on the public finances, while keeping Conservative backbenchers happy.
Economic outlook – growth forecast cut this year from 2.4 per cent to 2 per cent.
Public finances – debt to GDP forecast revised up from 81.7 per cent to 82.3 per cent for 2016-17.
Government spending – new annual cuts of £3.5bn by 2020.
Corporation tax – to fall from 20 per cent at the start of this parliament to 17 per cent by 2020.
Sugar tax – new levy on sugary drinks to tackle childhood obesity.
Capital gains tax – cut from 28 per cent to 20 per cent.
ISAs – limit to rise from £15,000 to £20,000.
Tax-free persons tax allowance – raised to £11,500, effecting 31m people
Higher rate tax threshold – raised to £45,000
It might be the closest general election in living memory, but another coalition government after May 7 won’t affect your ability to find a new job. That’s the implication of a new survey of 600 employers by the Recruitment and Employment Confederation.
Just 4 per cent say they’ll cut back on their hiring plans if there is another coalition. For the majority (64 per cent) it will make no difference whatsoever. The remainder say they don’t know. Read more