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Budget 2017: 'No complacency' ahead of Brexit Budget 2017: £2bn for social care and tax rise for self-employed
(35 minutes later)
Chancellor Philip Hammond said there was "no room for complacency" despite improved economic forecasts as he delivered his first Budget. Chancellor Philip Hammond has announced an extra £2bn for under-pressure social care services in England in the Budget.
Mr Hammond promised to give the UK a "strong and stable platform" for its Brexit negotiations. Mr Hammond also promised to help firms hit by business rate rises - but increased national insurance bills for many self-employed people.
He unveiled forecasts for higher growth and lower borrowing but said the UK's deficit was still high, and productivity "stubbornly low". On the economy he said growth was expected to be higher - and borrowing lower - than forecast in November.
Labour is demanding a break from the Tories' "failed economic policies". Labour leader Jeremy Corbyn said it was "a Budget of utter complacency about the state of our economy".
The government has been under pressure to offer more resources for social care budgets, with the Local Government Association warning the entire system stands on the "brink of collapse" without an immediate cash injection and a commitment to a long-term solution.
Mr Hammond acknowledged the system was under pressure with an ageing population, and said the new £2bn for services in England would allow councils to "act now to commission new care packages".
He also said the government would set out the options for long-term funding of the social care system later in the year - although these would not include a "death tax".
Other announcements included:
It is expected to be the last Budget before the UK formally gives notice of its departure from the EU.It is expected to be the last Budget before the UK formally gives notice of its departure from the EU.
Opening his statement, Mr Hammond said the UK economy "continued to confound the commentators with robust growth". Opening his statement, Mr Hammond said although the UK economy "continued to confound the commentators with robust growth", the UK's deficit was still high, and productivity "stubbornly low".
He said the Office for Budget Responsibility had revised up its growth forecasts from 1.4% to 2% for 2017, and that borrowing would be £16.8bn lower than previously forecast.He said the Office for Budget Responsibility had revised up its growth forecasts from 1.4% to 2% for 2017, and that borrowing would be £16.8bn lower than previously forecast.
Several spending announcements were made ahead of Mr Hammond's Commons statement. What do you want to know about the Budget? Send us your questions or ideas and a BBC journalist will investigate and answer the most popular.
These include: Use this form to ask your question:
Mr Hammond had been under pressure, including from Conservative MPs, to announce help for businesses facing rates rises as a result of a revaluation.Mr Hammond had been under pressure, including from Conservative MPs, to announce help for businesses facing rates rises as a result of a revaluation.
He announced a £300m "discretionary fund" to be used by councils to help companies that are badly hit, and a £50-per-month cap on increases for firms facing the loss of small business relief.He announced a £300m "discretionary fund" to be used by councils to help companies that are badly hit, and a £50-per-month cap on increases for firms facing the loss of small business relief.
In a further measure, he said 90% of pubs would be given a £1,000 business rates discount.In a further measure, he said 90% of pubs would be given a £1,000 business rates discount.
The chancellor also announced an increase in National Insurance rates for self-employed people, saying the disparity with the amount paid by employees "undermines the fairness of our tax system".The chancellor also announced an increase in National Insurance rates for self-employed people, saying the disparity with the amount paid by employees "undermines the fairness of our tax system".
Class 4 National Insurance contributions will go up by 1% to 10% and by a further 1% in April 2019, he told MPs. Class 4 National Insurance contributions will go up to 10% from 9% and to 11% in April 2019, he told MPs.
Other announcements include: Several spending announcements were made ahead of Mr Hammond's Commons statement.
In the build-up to his speech, Mr Hammond distanced himself from talk of wider giveaways, stressing the need for the UK to reduce borrowing in the long term and to ensure the country is prepared for future global economic uncertainty and any short-term turbulence arising from its withdrawal from the EU. These include:
What do you want to know about the Budget? Send us your questions or ideas and a BBC journalist will investigate and answer the most popular. Responding to Mr Hammond, Labour leader Jeremy Corbyn said the Budget ignored the "crisis facing our public services and the reality of daily life for millions of people in this country".
Use this form to ask your question:
The government has been under pressure to offer more resources for social care budgets.
The Local Government Association says councils with responsibility for social care are facing a funding gap of £2.6bn by 2020 and the entire system stands on the "brink of collapse" without an immediate cash injection and a commitment to a long-term solution.
"The measures taken by government, such as the ability for councils to raise council tax to pay for social care, will not bring in enough funding to solve the social care funding crisis," said Izzi Seccombe, chair of the LGA's Community Wellbeing Board.
"Genuinely new government money is now the only way to protect the services caring for elderly and disabled people."
Prime Minister Theresa May has acknowledged acute pressures in social care and across the health service as a whole.
But she has rejected Labour claims that the NHS - which ministers say will receive £10bn in extra funding between 2016/17 and 2020/21 - is facing its worst financial crisis since its inception.
In the run-up to the statement, the last Spring Budget before it moves to the autumn, there has been speculation that the chancellor could pay for a boost to social care by raising national insurance rates for the self-employed.
For Labour, shadow chancellor John McDonnell said the UK was "at a crossroads" ahead of Article 50 and called on Mr Hammond to deal with rising living costs.
"It cannot be a Budget, where like his predecessor, he over-claims on the government's economic record, and under-delivers on its promises," he said.
Mr McDonnell said "adequate" funding was needed for the NHS and social care, and that women should no longer "bear the brunt of Tory tax giveaways for a wealthy few".
For the SNP, Scottish Finance Secretary Derek Mackay called on the chancellor to provide some "financial relief" for struggling families and public services, and said extra spending cuts could be "disastrous".
Aside from the Budget, several previously-announced changes come into force in April, including an increase in the personal tax allowance to £11,500, a new inheritance tax allowance, a rise in the annual ISA limit to £20,000 and the introduction of a levy to fund apprenticeships.Aside from the Budget, several previously-announced changes come into force in April, including an increase in the personal tax allowance to £11,500, a new inheritance tax allowance, a rise in the annual ISA limit to £20,000 and the introduction of a levy to fund apprenticeships.