The Budget - 2p National Insurance cut confirmed by the Chancellor 

17:19: That’s all folks

That’s all from us. If you missed anything we have got a lovely article summarising all the big announcements from today’s Budget: Check it out here.

 

15:50: Difficult choices need to be made to stop debt from rising as a share of national income - OBR

Overall, while GDP growth has disappointed since the last forecast, the OBR expects a steeper fall in inflation and interest rates in order to support a stronger recovery in output both this year and next. The net result is an underlying economic and fiscal forecast that looks very similar to last year. 

 

However the forecaster has said some difficult choices will need to be made if the government wants to stop debt from rising as a share of national income. 

 

And, while the Chancellor has delivered a second 2p cut to the headline rate of national insurance, he has also confirmed a wider set of decisions that’ll keep the overall tax take rising to its highest level in more than 70 years.

 

Additionally, the OBR has said that by leaving departmental expenditure plans largely unchanged in the face of higher inflation and population growth, he’s also chosen no real growth in spending per person on public services over the next five years. 

 

15:32: Government borrowing to fall to one percent of GDP by 2028-29 - OBR

The OBR has also said that the Chancellor’s decision to spend all of the underlying fiscal improvement on the OBR’s forecast means the overall path of borrowing as a share of GDP will remain largely unchanged. 

 

This means, from a post-war high of 15% of GDP during the pandemic, borrowing will fall to around four precent of GDP this year, before steadily rising to around one percent of GDP by 2028-29. Additionally, the Chancellor remains on track to meet his fiscal target of getting debt to fall as a share of GDP in five years’ time. 

 

15:26: Welcome help for people in debt, but longer-term plan needed - National Debtline

Responding to the budget, National Debtline’s acting chief executive David Cheadle said: “This Budget contains welcome help for people in debt, but a longer-term plan is needed for struggling households.  

 

“The Chancellor’s changes to Debt Relief Orders - something we have long called for - will make a significant difference for many struggling households. By removing the fees for these, alongside other eligibility changes, many more people will be able to access this vital debt solution. 

 

“The six-month extension to the Household Support Fund is welcome and will provide an ongoing lifeline to people most in need. However, it is only a temporary solution. And with energy arrears at record levels, and council tax increases on the horizon, a longer-term plan is needed to support people in financial difficulty. 

 

“The Government needs to take action now and introduce a Help to Repay scheme to provide desperately needed support to people trapped in energy debt, alongside reform of council tax collection rules to ensure people aren’t pushed further into debt.”  

 

15:20: GDP per person to fall 1.25% below pre-pandemic peak - OBR 

Turning to the GDP figures, GDP per person continues to fall to a trough of 1.25% below its pre-pandemic peak in the middle of this year, and ends the forecast almost a full percentage point lower than the OBR expected in November.

 

15:01: Interest rates expected to fall to just over three percent by 2026 - OBR

Bank rates, meanwhile, is forecast by the OBR to fall from its current 15-year high of 5.25% to just over three percent by 2026. This is around 0.75% lower than forecast in November. 

 

14:59: Inflation to hit two percent target by second half of this year - OBR

As announced by Jeremy Hunt in the Budget, the OBR have confirmed inflation will fall back to its two percent target by the second half of this year - helped by falling global energy prices and a cooling of the domestic labour market. 

 

Its central forecast then show inflation remaining at just below two percent until the final year of the forecast, although recent disruptions to global shipping through the Red Sea - as well as the ongoing conflict in the Middle East - poses a "significant risk" to this "more favourable outlook" for inflation. 

 

14:39: Eradication of DRO fee a "huge success" - Money Wellness 

Commenting on the decision to eradicate the £90 DRO fee, Money Wellness’s director of external relations Sebrina McCullough said: “We’ve consistently advocated for the eradication of the £90 administration fee for debt relief orders (DROs), as it was preventing some of the most vulnerable in the UK getting the debt relief they so desperately need.

 

“DROs are often suitable for people who owe less than £30,000, don’t own their home, have few assets and little or no spare income, so finding the upfront £90 administration fee was a big ask. Our research indicates that the fee prevents 44% of those eligible from accessing this solution.

 

“We warmly welcome today’s change. And the extension of the Household Support Fund is much needed too. It plugs a gap for those struggling with living costs and makes sure millions aren’t forced deeper into poverty.

 

“We’re helping around 1,000 people a day – demand is unprecedented and is growing month on month. Energy debt and priority arrears are at an all-time high, and bills are still very high. There’s no respite for households from cost-of-living pressures and the Household Support Fund provides a vital safety net for millions.”

 

Meanwhile, StepChange Debt Charity’s chief client officer Richard Lane said: “It’s encouraging to see a six-month extension to the Household Support Fund (HSF) announced today, but it’s questionable how much things will improve in that time, especially considering two in five people are currently struggling to keep up with household bills and credit commitments.

 

“Our advisors regularly speak to clients struggling to meet even the most basic needs, like getting a healthy meal and keeping the heating on. Local support funded by the Household Support Fund are a crucial lifeline for them. 

“Increasing repayment times from 12 months to 24 months for Universal Credit (UC) budgeting advances will improve affordability for those struggling to make ends meet. However, we know that millions of people receiving UC are still subject to unaffordable deductions from their benefits to repay other government debts and more will need to be done to end unaffordable UC deductions that can all too often cause real hardship.

 

“We are particularly pleased to see the announcement that the application fee for Debt Relief Orders (DRO) will be scrapped and this will be remove a real barrier to those seeking support with problem debt. When already facing financial hardship, fees to access solutions can be prohibitive in getting back on track and rebuilding financial security.

 

“Today’s announcements are steps in the right direction, but further reforms are needed to reduce essential costs like council tax and energy. We have called on the Government to commit to introduce an effective council tax support scheme and develop a social tariff for energy as soon as possible.”

 

14:35: Decision to raise the VAT registration threshold a welcome one - Evelyn Partners

Reflecting on the decision to increase the VAT registration threshold to £90,000, Evelyn Partners’ VAT director Owen Burn said: "The Chancellor has confirmed that the VAT registration threshold will increase from £85,000 to £90,000 with effect from 1 April 2024. The increase is a welcomed one, with the current threshold having been in place since 1 April 2017.

 

"With many small businesses facing challenging trading conditions in an environment of rising supplier costs and a dent in consumer confidence, increasing the VAT registration threshold to £90,000 will help many entrepreneurs across the UK.

 

"This tax cut means that many existing businesses will not only be able to carry on trading but it will also help encourage a new generation of entrepreneurs to set-up businesses. It is the early stages of setting up a business where entrepreneurs need all the support they can get.

 

“However, we also need to err on the side of caution in that some businesses may opt to manage turnover to remain under the threshold to avoid a potential 20% rise in prices and the additional administrative and financial burden of filing Making Tax Digital compliant VAT returns. It is therefore unclear what level of growth this marginal rise will deliver for small businesses as a whole at or around the threshold."

 

14:32: Budget marks another "missed opportunity" for housing market

Commenting on the Budget’s impact - or lack thereof - on the economy, Zoopla’s executive director Richard Donnell said: “The budget marks another missed opportunity to take action on boosting supply and mortgage availability in the housing market.

 

“The consensus is that the country needs more new homes. Supply has increased but this has stalled. There is a need for widespread reform of the planning system to encourage supply. More funding is needed for social and affordable homes, and housing infrastructure investment to unlock supply.

 

“The government should also look to support the emergence of a long-term fixed rate mortgage market as a matter of urgency. This will help more young people with smaller deposits access home ownership - particularly in southern England where deposit size is the biggest barrier to getting on the housing ladder.

 

“Another missed opportunity is the decision not to make the £625,000 threshold for first-time buyer relief permanent. This means 30% more first-time buyers will be liable to pay full stamp duty from March next year.”

 

14:28: Extension of Energy Profits Levy could further unsettle the GB energy generation investment landscape - Cornwall Insight

Responding to the extension of the Energy Profits Levy, Kate Mulvany - principal consultant at Cornwall Insight - said: “Increasing the duration of the oil and gas windfall tax (Energy Profits Levy) could be seen as positive for decarbonisation if the resulting profits are used to deliver the UK’s net zero plan.

 

“Yet, without a solid transition strategy away from the UK’s oil and gas dependence and no assurance that tax revenues will directly support decarbonisation initiatives, the potential upheaval in investment could outweigh the benefits, posing risks to both UK energy security and employment in the energy sector.

 

“The stability of the UK’s regulatory environment has historically been a significant draw for investors looking to support renewable energy projects. Prolonging the windfall tax could weaken investor confidence, at a time when the UK is seeking record levels of investment to deliver the transition to net zero.

 

“Without a clear commitment to reinvest the windfall tax proceeds in the energy transition, the extension could affect more than the oil and gas sector. Extension to the Energy Profits Levy could further unsettle the GB energy generation investment landscape unless sufficient assurances are given that the tax on generators will not follow suit."

 

14:22: Sale of NatWest shares still on track - Hargreaves Lansdown

Commenting on the update on the sale of NatWest shares, Hargreaves Lansdown’s head of money and markets Susannah Streeter said: “There is likely to be strong interest in the NatWest share sale, which will be the highest profile public share offer since the Royal Mail IPO more than a decade ago. Giving retail investors the opportunity of a slice of ownership in NatWest is a welcome move, given that they have been left out of previous sales, which have been reserved for institutional investors.  

 

Prospects are looking up for the bank after a tumultuous year when it lost both its CEO and Chair and the valuation has been under some pressure ever since. But with an attractive entry point, some easing headwinds and strong capital levels, the bank’s current situation is likely to spark enthusiasm.

 

“Although the UK banking sector has been pretty unloved for some time, there are reasons to be optimistic. Performances may have peaked as interest rates look set to come back down over this year and next, which will put pressure on net interest margins, but there are some encouraging tailwinds emerging.

 

“We are continuing to see some resilience from the consumer which is a beneficial trend given that loans are a key source of income for banks and customer defaults are a risk. But the amount banks have had to set aside to cover bad loans, has been lower than expected.

 

“Plus, there’s been a return to real wage growth in the UK, which means pay is rising faster than inflation, and there’s a real chance default levels can remain low. There also seems to be a slowdown in the drive to shop around to get the best savings rates by moving deposits from low to higher interest bearing accounts.

 

“While this has been beneficial for consumers, it’s less profitable for banks but if this slowing trend continues it will ease some pressure on margins.”

 

14:11: Extension to Recovery Loan Scheme a "welcome step" - Atom Bank

Tom Renwick, head of business lending at Atom Bank, meanwhile said: “The extension to the Recovery Loan Scheme (RLS), which will be renamed as the Growth Guarantee Scheme, is a welcome move from the Chancellor. The scheme had been due to conclude in June 2024, which meant that businesses and lenders faced a hard cliff edge.

 

“However, this extension provides lenders with greater confidence around supporting more businesses through the scheme than otherwise would have been the case. While the RLS, and its predecessor the Coronavirus Business Interruption Lending Scheme (CBILS), were designed to boost support during and in the immediate aftermath of the pandemic, such initiatives have the potential to boost SME lending outside of crisis periods. 

 

“We have seen this already in places like the U.S. and Germany where such schemes have been deployed to great effect, and without being linked to an economic crisis. Research by Frontier Economics has suggested that evolving these schemes to provide more long-term support to SMEs would boost the level of lending to these businesses by almost five percent, which would substantially improve the position of the nation’s SMEs, stimulating job creation and economic growth. 

 

“Smaller businesses already face a host of challenges, holding back their potential - long term funding support could make a real difference in overcoming those hurdles and boosting the economy as a whole.”

 

As for the zero change to Stamp Duty Land Tax, Atom Bank’s head of mortgages Richard Harrison said: “It’s undeniable that Stamp Duty discourages many buyers, whether they are looking to upsize or downsize, so it’s disappointing that there have been no changes made to the regime. The increases in house prices seen in recent years have meant that buyers have faced ever growing tax bills, which only serves to tie up the market.

 

“The step to 10% stamp duty on transactions of above £925,000 in particular is so steep that it does stall the market at this level, discouraging downsizing and impacting other areas of the market down the chain.

 

“I would like to see the government look at more fundamental and enduring changes to the way stamp duty works. Previous measures have all too often been temporary at best and ultimately mean these market issues remain.”

 

14:08: Extension to recovery loan scheme a "boost to businesses" - Manx Financial

Commenting on the extension to the recovery loan scheme, Manx Financial Group’s chief executive Douglas Grant said: “Today’s decision to provide £200m of funding to extend the recovery loan scheme, enabling 11,000 small and medium-sized enterprises (SMEs) access to the finance they need, brings hope and encouragement to both businesses and consumers. SMEs should take this opportunity to reevaluate their current lending arrangements and strengthen their positions.

 

“Research conducted by Manx Financial Group reveals a significant shift in the financial landscape for SMEs. In contrast to the previous survey, where only 25% faced challenges, the current findings indicate that two out of five SMEs are now grappling with operational slowdowns or halts due to a lack of external financing.

 

The survey also underscores that 15% of SMEs seeking external finance or capital are unable to secure the necessary funds. This financial constraint, coupled with a potentially unprecedented and volatile environment marked by ongoing conflicts, multiple elections, a tightening labour market, and persistent cost-of-living challenges, poses obstacles to the prospects of SMEs and national economic growth.

 

Moreover, given the projection of stubbornly high interest rates for the next 12 months and increasing demand for working capital, we encourage SMEs to reassess their current lending situations. It is crucial for them to be well-prepared but mindful of potentially reducing debt payments this year. 

 

“We have been calling for the current and next government and Treasury to remain focussed on short-term loan schemes. We also believe that prioritising the establishment of a permanent government-backed loan scheme, tailored to resilient sectors and involving both traditional and non-traditional lenders, could be instrumental.

 

Such a permanent scheme has the potential to play a pivotal role in unlocking economic resurgence for numerous companies, thereby sustaining the overall economy—especially as this year’s UK business performance looks shaky.”

 

14:05: Spring Budget a "flop" that could drive people out of the UK - deVere 

Responding to the budget, Nigel Green, chief executive of deVere, said: “Going into the Budget, we already knew that the Chancellor would announce a further cut to national insurance and extend a freeze on fuel and alcohol duty in a bid to ease the strain on people’s finances.

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“We knew this because it was announced in advance, presumably in an attempt to get as much mileage from the good news as possible with voters who go to the polls this year.

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“But the fact remains that the personal allowance – the amount people can earn before starting to pay tax – and the thresholds for the higher and additional rates – are frozen again. This means that as wages increase, more people will be pushed into higher-rate tax bands.”

 

14:02: Labour to support National Insurance cut 

In response to the Budget, Sir Keir Starmer has said his party will support the cut in National Insurance. Labour also supports the fuel duty freeze.

 

He does ask the Chancellor to set out how this will help people "at the pump".  

 

14:00: Extension of Household Support Fund a "welcome lifeline for struggling households" - Creditspring

Commenting on the extension of the Household Support Fund, Neil Kadagathur - Creditspring chief executive - said: “The extension of the Household Support Fund is a welcome lifeline for millions of struggling households across the UK – the onus is now on local councils to do more to boost awareness and simplify the application process.

“Our recent research found that, with just weeks to go before the scheme was due to close, £85m remained unclaimed, with dozens of councils sitting on over £1m in support whilst vulnerable people in their communities have been struggling to pay bills. There is an opportunity to learn from the challenges of the previous Household Support Fund schemes and ensure there is greater effort to identify vulnerable people and proactively reach out to provide financial vital support and prevent people from being forced to turn to turn to high-cost credit products, or predatory lenders in order to survive.”

 

13:58: Leased assets to be included in full expensing - FLA

Another interesting announcement to come off the back of the budget is the fact that leased assets will be included in expensing once it’s affordable. Reflecting on this, Stephen Haddrill, Director General of the Finance & Leasing Association, said: “This is a great outcome from a long-term campaign by the FLA. 

 

“It’s excellent that the Government recognises that leasing is the funding route of choice for many businesses and makes a vital contribution to investment. We welcome this transformative move. 

 

“Its affordability will be covered through increased investment and higher productivity, and its introduction should be as fast as possible.

 

“We are also delighted that a replacement for the Recovery Loan Scheme has been confirmed in the Growth Guarantee Scheme. We look forward to working with the British Business Bank to get that vital funding out to small businesses.”

 

13:55: Leader of the Opposition

Sir Keir Starmer is on his feet, describing public finances as the "national credit card is maxed out".

 

13:52: News of a British ISA "welcome" NISR

As we wait to hear from the Leader of the Opposition, let’s see how the industry has reacted to this Budget.

 

Commenting on the news of an introduction British ISA, the National Institute of Economic and Social Research’s (NIESR) assistant economist Robyn Smith said: "Another addition to the list of ISAs that are available to people, the introduction of the British ISA with an annual limit of £5,000 (bringing the annual lifetime ISA allowance to £25,000) is welcomed, encouraging investment into UK equity. However, this is a policy for the high income deciles and does not address the issue that more than 11 million people do not have savings of £1,000 for a rainy day, let alone £25,000."

 

13:44: Summary of the biggest news

As we take a short break in the Commons, here are some of the big takeaways from that Budget. Several significant announcements were made, including a 2p cut in National Insurance and the abolition of Stamp Duty relief for buyers of multiple dwellings. Additionally, measures such as extending the energy profits levy and reducing capital gains tax on properties aim to stimulate economic activity. 

13:39: Chancellor brings his speech to a close

 

13:34: Chancellor confirms 2p cut in National Insurance

2p cut will come in from 6 April, while for those that are self-employed will see their National Insurance fall from 8p to 6p.   

 

13:29: Stamp Duty relief to be abolished

Stamp duty relief for people buying more than one dwelling will be abolished.

 

13:27: Energy profits levy to be extended to 2025 

 

13:24: Capital gains tax on properties to be reduced 

After assessment from both the OBR and the Treasury, capital gains tax on properties will be reduced from 28% to 24%. 

 

13:23: Property taxiation 

To help fund tax cuts, the Chancellor has said he’ll abolish tax relief for furnished let properties.

 

13:18: A Budget for a General Election

If I had a penny for the amount of times I’ve heard the Chancellor comment on the Government’s record over the past 14 years, I’d be a very rich man. This is certainly the government setting out its pitch to voters ahead of the election.

 

13:12: New British Isa introduced to "encourage investment"

 

13:01: Public shares in NatWest to be sold in the summer

This is subject to good market conditions, the Chancellor has said.   

 

13:00: New powers handed to the FCA and the pensions regulator 

 

12:57 House building

Chancellor announces £242m to build 8,000 houses, the Hunt also the claiming the government is on track to meet their £1m house building target.  

 

12:52: VAT Registration threshold to increase

Designed to support SMEs, the VAT registration threshold is set to go up from £85,000 to £90,000.

 

12:48: Economy will grow by 0.8% this year, according to OBR forecast

 

12:48: Government borrowing lower than the Autumn Statement

 

12:46: Borrowing to be at its lowest level in almost 30 years

Borrowing in comparison to GDP will be at its lowest level since 2001 by the OBR’s forecast period on 2028/29

 

12:45: Fuel duty to be frozen

Fuel duty will remain at its current rate and be frozen for the next 12 months, and will extend the "temporary" 5p cut on fuel duty. 

 

12:43: Household Support Fund extended

The Household Support Fund will be extended beyond 31 March, continuing for another six months.

 

12:39: Debt relief order charge abolished

Chancellor next announces an extension to the repayment period for the budget advance loan from 12 months to 24 months. He’s also abolished the £90 debt relief order. 

 

12:37: OBR forecasts

OBR forecasts suggests inflation with fall below the two percent target in two months time - a year ahead of initially predicted.

 

Disposable income, meanwhile, has risen by 0.8% in the past year 

 

12:35: Chancellor confirms tax cuts

 

12:34: Chancellor outlines the Conservatives record in government over the past 14 years

Certainly giving election vibes

 

12:33: Chancellor on his feet

Here we go!! He opens by pledging £1m to build a Muslim War Memorial.

 

12:23: How are you watching the budget?

The snacks are in as the Editorial team get ready to hear from the Chancellor. 

12:19: PMQs underway: 

The countdown is on, and of course prior to the budget we have got Questions to the Prime Minister as we get ready for the main event!

 

11:55: Those on £50,000 to receive the biggest cash gain from 2p National Insurance cut

The flagship policy of today’s budget is likely to be a 2p cut in National Insurance.

 

However the net benefits vary drastically to consumers, with research from the Resolution Foundation suggesting those earning around £50,000 will benefit the most from this, with those on around £19,000 or less expected to be worse off as they’d lose more from threshold freezes than they’d gain from cuts.

 

In an election year, how would a further 2p rate cut to NIC affect personal tax rates?

💸 The biggest cash gains for those on £50k (net gain of £1,200 each year)

👛 If you earn <£19k, you’d be worse off since you lose more from threshold freezes than you’d gain from cuts pic.twitter.com/ETri1En2Us

— Resolution Foundation (@resfoundation)

In an election year, how would a further 2p rate cut to NIC affect personal tax rates?

💸 The biggest cash gains for those on £50k (net gain of £1,200 each year)

👛 If you earn <£19k, you'd be worse off since you lose more from threshold freezes than you'd gain from cuts pic.twitter.com/ETri1En2Us

— Resolution Foundation (@resfoundation) March 6, 2024

 

11:47: What is expected in the OBR’s forecast? 

Following all the pageantry of the Commons and the Spring Budget, we turn to the OBR for all of its projections for the rest of this year and beyond - with a growth in the UK population potentially providing a boost to GDP over the long term, as well as lower inflation and interest rates. 

 

However, in the short term, growth is expected to be weaker - with experts from Capital Economics expecting the national forecaster to downgrade its GDP forecasts for 2024 to zero growth. 

 

Our latest forecasts for the economy and public finances will be published later this afternoon after the Chancellor’s #SpringBudget speech 📘

Follow us later for charts and highlights 📊 pic.twitter.com/o1vpCBKLn2

— Office for Budget Responsibility (@OBR_UK)

Our latest forecasts for the economy and public finances will be published later this afternoon after the Chancellor’s #SpringBudget speech 📘

Follow us later for charts and highlights 📊 pic.twitter.com/o1vpCBKLn2

— Office for Budget Responsibility (@OBR_UK) March 6, 2024

 

11:31: 99% mortgage a "misguided policy" designed to attract younger voters - Yopa

Over the past few days, the prospect of a government backed 99% mortgage scheme seems to have simmered down somewhat - and although it’s introduction is a possibility, it’s looking increasingly unlikely. 

 

Responding to this, real estate agency Yopa’s chief executive Verona Frankish said: “From the first moment it was suggested that the Conservatives would introduce a 99% mortgage scheme ahead of this year’s general election, it was widely understood to be a misguided policy that was simply designed to attract younger voters without considering the long-term complications.

 

“Had it come to fruition, the policy would’ve essentially trapped an entire generation of first-time buyers into expensive repayment plans that would have no doubt spurred an increase in the number of those forced to default.  

 

“It’s also likely that the inevitable surge in demand caused by such an announcement would have only caused house prices to climb even higher, putting future buyers at a further disadvantage and increasing the risk of negative equity for many more should the market have buckled under the pressure.

  

“Our nation can now breathe a collective sigh of relief, safe in the knowledge that this ill-advised policy is unlikely to see the light of day.” 

 

11:04: Today’s Budget "final chapter" of 14 years of Tory economic failure - Shadow Chancellor

Labour’s Shadow Chancellor Rachel Reeves, also on Twitter, wrote how today’s should be the final chapter of 14 years of "Tory economic failure".

 

She added that "Britain is worse off under the Conservatives. Nothing Jeremy Hunt says or does today can change that."

 

Today’s Budget should be the final chapter of fourteen years of Tory economic failure.

Taxes are rising, prices are going up in the shops and we have been hit by recession.

Britain is worse off under the Conservatives. Nothing Jeremy Hunt says or does today can change that.

— Rachel Reeves (@RachelReevesMP)

Today’s Budget should be the final chapter of fourteen years of Tory economic failure.

Taxes are rising, prices are going up in the shops and we have been hit by recession.

Britain is worse off under the Conservatives. Nothing Jeremy Hunt says or does today can change that.

— Rachel Reeves (@RachelReevesMP) March 6, 2024

 

10:56: "Don’t throw it away" - Chancellor’s message ahead of Budget

In a post on the Treasury’s Twitter page, Chancellor Jeremy Hunt has said we’ve "worked so hard to get through this really challenging period", and that we mustn’t "throw it away", adding that the economy is set for "healthy growth".

 

We’re sticking to the plan. pic.twitter.com/kJefyMKndc

— HM Treasury (@hmtreasury)

We’re sticking to the plan. pic.twitter.com/kJefyMKndc

— HM Treasury (@hmtreasury) March 6, 2024

 

10:48: Government must make homeownership "accessible for more people" - Nationwide

Nationwide has called on the Government to introduce four measures to support first-time buyers in the Spring Budget. 

 

This includes commission an independent review of the first-time buyer market, stamp duty reform, the and the reintroduction of the Help to Buy ISA.

 

Nationwide’s director of home Henry Jordan said: "The government must make homeownership accessible for more people.

 

"By starting with a cross-party review of the first-time buyer market and working cohesively with the industry to implement the best solutions, we can respond to today’s first-time buyer challenges. Nationwide is playing its part through our Helping Hand mortgage and could do more if the cap on high loan to income lending was raised.  

 

"To help the process, Nationwide has joined forces with the Building Societies Association and four of the UK’s largest building societies to produce a Housing white paper this spring outlining the solutions we believe are needed to tackle the homeownership crisis."

 

10:39: Timeline for today

Just to give a brief timeline on a day of a few big announcements:

• 12:05: Questions to the Prime Minister
• 12:35: Chancellor on his feet for the Budget
• 13:30: Response from the Leader of the Opposition
• 14:30: OBR to host a Press Conference on its forecasting

10:26: Chancellor urged to "double down" on support for high growth industries - CBI

The CBI has called on the Chancellor to use "targeted fiscal and regulatory levers" to support industries that will power sustainable economic growth ahead of the budget later today.

 

Among this, Commit to developing a Net Zero Investment Plan that will provide the certainty needed to crowd-in private finance, further extend the plug-in van and truck grant beyond 2025 and introduce VAT reforms on public charging to incentivise the uptake of zero emission vehicles by reducing the rate of VAT levied on public EV charging to five percent.

 

The CBI’s chief economist Louise Hellem said:  “The UK’s ability to boast a range of innovative high growth sectors is rightly the envy of the world and represents an incredible engine for powering sustainable growth. But it’s also a platform that requires careful curation and cultivation.

 

“In an era of footloose capital and increasingly mobile talent, we need to act urgently and decisively to ensure the UK doesn’t lose vital ground on rivals desperate for their own slice of the pie.

 

“The Autumn Statement set out plans for how the UK can compete to win across five growth sectors – but momentum is key. The Budget represents the perfect opportunity to double-down on these industries by setting out key measures to unlock their future success.

 

“By delivering policy certainty, bolstering investment incentives and empowering sector champions, the Chancellor has the low-cost tools needed to help these critical sectors deliver opportunity and prosperity for decades to come.”

 

10:16: 99% mortgage scheme plans a "significant boost" for potential homeowners - Lenvi

Commenting on rumours around the 99% mortgage scheme, Lenvi’s chief executive Richard Carter said the plans could be a "significant boost" for potential homeowners, "opening up the property market for those who have been blocked by the need for a massive deposit.

 

He added: “It’s no secret that high percentage deposits have been the main barrier for many looking to purchase their first home, with house prices reported to have risen by 60% in the last 10 years. However, just a 1% deposit does entail risks for borrowers: namely not being able to afford the monthly payments, or the house losing value, leaving homeowners being stuck with negative equity.

 

“99% mortgages were last used in the UK in 2007, where total mortgage payments as a percentage of income for first time buyers was at an all-time high of 23.5%. However, the 2008 recession and the inevitable economic turbulence that followed led to a steep drop by 2009 to just 18.3% of first time buyers, with the average UK house losing 20% of its value from mid-2007 to February 2009.

 

“There’s always a risk of similar consequences, given the UK entered a recession in the last months of 2023. People considering a 99% mortgage to get their foot onto the property ladder need to consider the uncertain economic state of the UK market, and be aware of the implications this could have.

 

“Lenders also have a responsibility here to show patience and understanding to potentially vulnerable customers who are facing a remortgage or who are going through the stressful process of buying a home, if this scheme is implemented.” 

 

10:09: What are we expecting:

With little wriggle room in the public finances, the biggest flagship policy expected will be the widely reported 2p cut in National Insurance charges. To fund this, the is expected to announce a "vaping product levy" charged on manufacturers and importers of liquid vapes as well as £300m "tax raid" on second homes. 

 

Rumours are also abound that the Treasury may also overhaul the Stamp Duty Land Tax - or at least offer buyers another holiday from the levy. 

 

The big prediction that has got everyone talking, however, has been leaks the government may introduce a new new 99% mortgage scheme. 

 

10:00:

Hello, and welcome to Credit Strategy’s live coverage of what could be the last budget of this Parliament in what many are predicting will be a pre-election bonanza in a last-ditch effort to swing the polls back in favour of the Conservatives ahead of a General Election later this year.