Budget 2018 - LIVE: Hammond announces end to PFI and ploughs extra £1bn into troubled universal credit
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Your support makes all the difference.Philip Hammond has reiterated Theresa May's claim that the era of austerity is "finally coming to an end" in his last pre-Brexit Budget.
The chancellor unveiled a new "UK digital services tax" aimed at tech giants, which are profitable and generate at least £500m a year in global revenues.
Promising a Budget for "Britain's future", Mr Hammond also earmarked an extra £1bn for the Ministry of Defence and set out the government's plan for the NHS, including £2bn per year for mental health services.
In addition, he said the government would never sign another private finance initiative (PFI) deal, long criticised for locking the taxpayer into hugely expensive infrastructure contracts that enrich private firms.
He also promised an additional £1bn for the implementation of universal credit, which also faces widespread criticism for pushing vulnerable people into homelessness and food bank dependency.
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A package of measures to stimulate business investment includes an increase in the annual investment allowance from £200,000 to £1m for two years, targeted relief for the cost of acquiring IP-rich businesses; and a permanent tax relief for new non-residential structures and buildings.
Hammond is now talking about the challenges of governing digital platforms. He said it was 'not fair' that such businesses can generate revenue in the UK without being taxed.
He announces a digital services tax - aimed at established tech giants, not tech startups, eg Google and Facebook. He says it is definitely not a tax on sales of goods, as the consumer would bear the brunt.
The tax would come into effect in 2020 and could raise £400m a year.
He jokes that he is anticipating a call from the former head of the Liberal Democrats - Sir Nick Clegg, who recently went to work for Facebook.
The digital services tax is an interesting promise. As our columnist John Rentoul points out, this is another attempt to steal a march on Labour.
Backlash alert - A number of MPs on the opposition benches responded angrily after Mr Hammond announced an additional £400m to allow schools to "buy the little extras they need".
Shadow education secretary Angela Rayner tweeted: "Philip Hammond says schools need "little extras" when headteachers are begging parents for donations to cover textbooks and stationery. Schools have been cut by over £2bn since 2015 - today they get less than a fifth back and he tells them to be grateful!"
Former Greens leader Caroline Lucas said: "Cannot believe how out of touch this government is. Schools don't just need money for "little extras" - they are struggling to pay staff, upkeep buildings and provide vital support to children with special needs."
And Labour MP Jess Phillips posted: "Phil my kids school is talking about shutting early on Fridays because they can't staff it. It's not because they don't have footballs. FFS (the F is not fiscal)."
Hammond has now moved onto business rates. For the next two years, he will cut business rates by a third for businesses that have a rateable value of £51,000 or less. This is aimed at smaller cafes, pubs, restaurants and shops.
He also announces a mandatory business rates relief for public toilets. Hammond draws groans by saying this will help local authorities 'relieve themselves' and says he does not want to get 'bogged down'.
Hammond adds that it is 'the only announcement in this Budget that hasn't leaked'.
On housing, Hammond says he will give £500m for housing infrastructure which will unlock plans for 50,000 homes.
Stamp duty will be abolished for all first-time buyers of shared ownership properties valued up to £500,000, applied retrospectively to the date of the last Budget.
Hammond says he is giving £2m to repair parts of Belfast after a major fire. He receives huge jeers when he says he is responding to requests from several DUP MPs - who are propping up Theresa May's administration.
He also sets out the money that Northern Ireland, Scotland and Wales will receive through the Barnett consequentials.
Lastly, Hammond turns to the environment. He announces £10m to pick up plastic waste - and starts a complicated joke about shadow chancellor John McDonnell, who tripped over some flytipped waste and injured his face.
There will be a new tax on plastic packaging that contains less than 30% of recycled plastic, he says.
However he moves away from a ban on plastic cups - as there is not enough evidence to show it would make a material difference, he says.
Now for the consumer stuff - Hammond announces several measures to help with the cost of living.
These include a freeze on fuel duty for the ninth successive yea, saving the average car driver to more than £1,000 and to the average van driver to over £2,500.
Also includes a freeze on beers and ciders, and a freeze on duty on spirits - in a nod to his Scottish Tory colleagues. It would amount to 2p on beer, 1p on pint of cider or beer and 30p on a bottle of Scotch or gin compared to the inflation assumption in the OBR forecast.
Duties on wine to rise in line with RPI inflation and white ciders to be taxed at a new higher rate.
Tobacco duty escalator to continue to rise at inflation plus 2%.
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