British chancellor uses his first Autumn Statement to scrap it
Nov 24 2016 by Michele Stevens
It will be the first real indication of the economy since the UK's shock vote to leave the EU. That is up from 7.20 pounds now, but represents only a small step towards an existing target of 9 pounds by 2020.
Mr Hammond also raised the country's minimum wage level and hiked tax thresholds to give workers more take-home pay. Whether this cost is passed on to the tenant via an increase in rent remains to be seen.
He also confirmed that the National Living Wage would be brought in to pay £7.50 per hour from next April, and said he would be earmarking £1.4 billion to deliver 40,000 new affordable homes.
Savers struggling to get a decent return, older people plagued by cold calls about their pension and renters hit with high letting fees have all been given a boost by today's Autumn Statement.
Insurance Premium Tax (IPT) will increase again, from 10% to 12% in June 2017 - this will have an impact on the cost of your vehicle, home and travel insurance policies.
The Labour party has commented that Hammond will fail to help people on low and middle incomes.
Alongside the measures to help low earners, the Treasury said Hammond would emphasize that the best way to improve living standards was by fixing the public finances and boosting Britain's low productivity growth.
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He said that Hammond had merely "applied a sticking plaster to family budgets hemorrhaging losses imposed on them by his predecessor's budgets".
Mr Hammond's new rules are more flexible, aiming to ensure annual borrowing will fall to below 2pc of GDP once adjusted for the business cycle, and welfare spending will stay within the new cap. "We are highly constrained in how we can approach this".
Gross domestic product was expected to grow by only 1.4 per cent next year - sharply down from the prior estimate of 2.2 per cent given in March.
Despite forecasting the United Kingdom to be the fastest growing major economy in 2016, the Office for Budget Responsibility has forecast growth to slow and inflation to rise over the next two years.
Since the European Union referendum in June, forecasts in tax revenues have been revised down.
There could be a cut in air passenger duty to offset the increased cost of foreign holidays caused by the pound's falling value.
BORROWING: Mr Hammond moved away from former Chancellor Osborne's pledge to balance the books by the end of this parliament. The body now forecasts the economy growing by just 1.4%.