United Kingdom announces digital services tax on tech giants

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We are not preparing for another general election. "That would not be in the national interest".

Despite the cuts, the IFS said that the total share of national income taken in tax is set to reach its highest level since the 1960s and be kept at a level not maintained since the early 1950s.

Analysis by the Resolution Foundation think tank showed the tax cuts would "overwhelmingly benefit richer households", with nearly half (45%) set to go to the top 10% of households.

John McDonnell, his Labour opposite number, used his response to the Budget in the Commons to claim the Prime Minister had "dashed the hopes" of millions of workers her claim that austerity was over.

Mr Hammond insisted that was not the outcome he expected and he remained confident there would be an agreement with Brussels.

The think tank said that austerity had been eased, but not ended, warning that the years ahead could be tough.

But Mr McDonnell faced a backlash of his own after saying Labour would support the government's tax cuts for the middle class. Now I can budget to get the children through all their holiday clubs they enjoy.

Johnson described the budget as a gamble for Hammond, given the possibility that the public finances could deteriorate next year.

A significant change will be the Chancellor's attempt to help fledging high-street businesses, who have certainly felt the pinch over the previous year, with noticeable casualties such as House of Fraser, BHS, Byron Burger and Jamie's Italian.

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"What the chancellor delivered this week was a budget that is good for people up and down this country and we should all be celebrating that".

The Chancellor dismissed suggestions that he had chopped down the "magic money tree" and burnt the lot. "So the big picture for the economy is that the fiscal stance will now go from a slight headwind to a small tailwind throughout the forecast", says Gregory.

Bone went on: "He will be able to cut tariffs, abolish VAT on certain products and reallocate the £39bn that he was going to give to the European Union to this country, cutting taxes, improving public services and lowering debt".

Mr Mackay is facing calls to lift the higher-rate threshold next April after Mr Hammond announced he was raising it to £50,000.

In his Budget statement this afternoon, Chancellor Phillip Hammond revealed a two percent "digital services tax" on large tech firms such as Amazon, Facebook and Google.

However, the OBR's forecast is based on a smooth and orderly Brexit. "The scale would be very hard to predict, given the lack of precedent".

From April 2020 Air Passenger Duty will be indexed in line with inflation, but there will be no change in the duty rate for short-haul flights.

"Mr Hammond said it would put "£130 in the pocket of a typical basic rate taxpayer".

The Chancellor set out a five-year plan for departmental spending which will see Whitehall budgets rise by an average of 1.2% a year. In the build-up to the Budget it had been rumoured that Chancellor Philip Hammond would row back on the promise and freeze the rise in the tax thresholds in order to fund extra spending on the NHS.

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