Loading...

Autumn Budget 2018 – Industry Highlights

Posted On: 31st October 2018

Chancellor of the Exchequer Philip Hammond presented the Government’s second Autumn Budget on 29 October.  It was a budget dedicated to the persevering people of Britain:

“The strivers, the grafters and the carers who are the backbone of our communities and our economy.”

Although many of the announcements within the Budget had already been made, it remained positive throughout, as the Chancellor claimed that the era of austerity is “finally coming to an end.”

Below you can find a breakdown of key Autumn Budget 2018 figures, and you can discover what public sector pipelines of work await your industry sector.

Defence

The defence budget has been a hot topic throughout 2018, therefore it was unsurprising that Mr Hammond included it within this year’s Autumn Budget.

In June this year it was reported that the Defence Secretary, Gavin Williamson had asked for up to £4 billion extra a year for the Armed Forces.

In the Budget, the Chancellor of the Exchequer announced that an additional £1 billion will be allocated to the defence budget for the remainder of this year and next, to boost cyber capabilities and anti-submarine warfare.

The Treasury has also committed to donating £10 million to the Armed Forces Covenant Fund Trust to support veterans on the centenary of the First World War armistice.

Housing

Mr Hammond continued to take steps to fix Britain’s “housing crisis” during this year’s Budget announcement, promising a further £500 million for the housing infrastructure fund which will “unlock 650,000 homes”. The fund now stands at £5.5bn.

It was also revealed that the government has partnered with nine housing associations to deliver 13,000 homes across England. With so much investment going into housing, the Chancellor wants to see more SME house builders involved in new housing development, so has announced up to £1 billion of British business bank guarantees to support them.

Health

In June the Prime Minister, Theresa May, announced a £84 billion five-year deal for the NHS, an investment which is dedicated to improving frontline services. On the day of the Budget announcement Mr Hammond commented on this:

“The NHS is the number one priority of the British people; and as we approached the 70th anniversary of its foundation, they had a right to know the scale of our commitment to it.”

He also revealed that the NHS 10 Year Plan will include a new mental health crisis service, which will aim to provide mental health support to people living across the UK.  During his speech he said that:

“These new services will ensure that people suffering from a crisis, young or old, can get the help they need.”

Local Government

The Chancellor also acknowledged the impact local government has had on repairing the state of public finances and acknowledged its need for immediate support before the next Spending Review is finalised. He noted that this Budget:

“ensures local councils have more resources to deliver high quality public services.”

In England, councils will receive an extra £650 million of grant funding for 2018/19, to ease the pressure on Adult Social Care for the elderly and those with disabilities, together with an extra £45 million of Disabled Facilities Grant.

Moving forward, Mr Hammond wants local authorities to have greater control over the money they raise through increased retention of business rates from 2020 and the removal of the Housing Revenue Account cap so that councils can build more new homes.

The full Budget text can be accessed on the government website. To find out more about our business and products, visit the BiP Solutions website.