Autumn budget 2017: Hammond announces stamp duty changes and slower growth - as it happened
Rolling coverage as chancellor Philip Hammond delivers the 2017 autumn budget
- Corbyn: Budget is record of failure
- Stamp duty changes will drive up prices!
- The key points
- Productivity growth slashed
- Fuel duty frozen
- 3bn more for Brexit
5.44pm GMT
In the spring, around the time Philip Hammond was preparing his first budget, some of those close to him suggested that the March budget was never intended to be that special because he was saving his big, structural changes for the autumn. Since then, the world has moved on somewhat and he came to the Commons today having made little impact with pre-budget announcements and with the expectation bar at what seemed like a Treasury all-time low. It felt as if he would be doing well not mess up.
And actually, by those criteria, he has succeeded. The budget was well received by his colleagues and, so far, nothing has fully unravelled. True, the Office for Budget Responsibility has exposed his main headline-grabbing measure, the abolition of stamp duty for first-time buyers for homes worth up to 300,000, as a 600m gimmick that will just push up prices. But, even though it would be nice to live in a world where bad policy always amounts to bad politics, sadly we don't, and it is hard to see Hammond suffering any penalty for his home owner subsidy (apart from when he realises he has not got 600m to spend on something else). The Tory tribe (MPs and newspapers) will never complain about a tax cut, and it is not a measure that will be voted down in the Commons. (For example, we can't even be sure Labour will vote against it.)
5.42pm GMT
The reaction to today's budget in the financial markets is quite muted.
Although building firms have been hit by the threatened clampdown on land banks, the FTSE 100 actually ended the day up 0.1%. The pound also shrugged off the growth downgrades, it's up half a cent against the US dollar and flat against the euro.
#UK #OBR productivity miss, miss, miss pic.twitter.com/H8mDgQTLkZ
One lesson from this Budget. Were George Osborne still Chancellor, or PM, he'd almost certainly have had to abandon his surplus rule by now. Those OBR productivity cuts make it essentially impossible
Hammond may have used a little sleight of hand (the reclassification of housing associations being an obvious example) to give himself a little headroom at this juncture.
In practice, however, he appears to have kept the vast majority of his powder dry, cognisant that there may well be a time, as Brexit approaches, when more radical action is merited.
.@vincecable scathing about "desperate" Treasury plans to start selling its 24bn stake in RBS by March 2019, says would not deliver value for taxpayer.
VC: "@George_Osborne accepted it was utterly wrong to start selling shares before you can recoup basic taxpayer outlay."
5.35pm GMT
Lib Dem leader Vince Cable urged caution after the budget revealed plans put a deadline on when the government will start selling its 24bn stake in Royal Bank of Scotland, by March 2019. Cable said the share price meant it was the wrong time to sell the shares at their current price. He told reporters:
Today's share price I believe is far below the acquisition price and we always argued in the coalition. Osborne accepted it was utterly wrong to start selling shares before you can recoup the basic taxpayer outlay and then you have to allow for a bit of inflation.
So that would be rather desperate I think. And we know there are these continuing legacy problems around RBS. This is not the time to sell the shares in RBS.
The chancellor talked about Britain being the sixth biggest economy in the world, as long as I can remember it was the fifth, but it is now the sixth. This is France overtaking the UK in the last year, India is fairly close behind.
The fact they are having to pay that upfront on the possibility we will crash out is revealing and politically very damaging.
The 3bn does not deal with the massive economic dislocation of Brexit, which is multiple many times that. This is the physical infrastructure costs associated with the change in the regulatory regime, it's a tiny fraction of the costs associated with Brexit.
5.16pm GMT
Here are some more budget tweets worth reading.
From Sky's Ed Conway
The real story of this Budget is the 6bn the govt just committed to Brexit and to the NHS over the next two years. That's BIG money. Much bigger than stamp duty etc
Every time the govt cuts stamp duty or introduces something like Help to Buy, economists point out it'll simply push up prices for those already on the ladder. And yet, every time it's a vote winner.
Here's our 6-point analysis of the new OBR economic outlook for #Budget17. Sub-optimal on the public finances, terrible for family finances pic.twitter.com/4homtW4TBu
Qte an achievement for small open economy like UK to be slashing growth forecasts when global economy enjoying most synchronised recovery since 2007 and our biggest trading partner is seeing best growth in a decade.
5.11pm GMT
Philip Hammond's threat to force property developers sitting on undeveloped land to use it or lose it may have sounded familiar.
Not for the first time, it's an idea previously pushed by Ed Miliband during his time as Labour leader. Back in 2013, Boris Johnson rubbished the idea, writing:
We need to help people with the cost of housing; but that means building hundreds of thousands of homes - homes for sale, for affordable rent, for private rent.
But you won't get developers risking their cash to build, if they are told they are vulnerable to Mugabe-style expropriations and a new mansion tax.
Just a reminder that when @Ed_Miliband suggested getting similarly tough on land banking, Tories accused him of Zimbabwe-esque land grabs
We should all be deeply concerned about the spread of authoritarian Marxist ideas to the most unlikely places.... https://t.co/zDiyI9gE2p
5.10pm GMT
And this is from the Guardian's Alan Travis.
Chancellor welcomed the Office of Budget Responsibility forecast that there would be 600,000 more in employment by 2022 but didn't mention OBR expects three-quarters will have to be filled by new migrants. pic.twitter.com/N426ZI068Y
5.08pm GMT
Here is a round-up of reaction to the budget from Tory MPs.
Related: 'I've heard a lot worse': Tory backbench verdicts on the budget
5.02pm GMT
These are from the Guardian's Helen Pidd.
The big loser in the budget? Yorkshire. Punishment for not getting their act together on the mayoral front. Meanwhile there's 243m for G Manchester transport, 134m for Liverpool, 250m for West Mids. Jodrell Bank in Cheshire gets a random 4m. Nowt for Leeds, Bradford, Hull...
I say they've not got their act together, but the truth is the government really doesn't want the deal most Tykes now favour: A Yorkshire Mayor, ruling over an i1/4ber-county with more people than Scotland or Wales. https://t.co/9vzIGOaYUh
4.55pm GMT
NIESR, the think tank, has warned that today's budget forecasts will be too optimistic if Britain crashes out of the EU without a deal.
The uncertainty around Brexit presents the most important downside near term risk to the economy, particularly in the event of an exit involving a sudden stop, while the judgments on productivity and employment are likely to represent the most significant upside risk to productivity, as well as the prospects for a sustained world recovery.
'A balanced Budget approach to the risks posed by #Brexit' - Our reaction to today's #Budget2017 announcement is out now - Read it here: https://t.co/JPgZGEe9u7 pic.twitter.com/u8G35Y8zDH
4.53pm GMT
Angela Rafferty QC, chairman of the Criminal Bar Association, has criticised a planned 600m cut to the Ministry of Justice's budget. She said:
The poor and vulnerable in society are being denied access to justice. Whilst the official budget statement is silent about this vital pillar of state we can see from the spending forecast that there will be a 600m reduction in an already meagre and inadequate budget for the ministerial department, a reduction for the Ministry of Justice resource budget of 9% over two years to 6bn by 2019/20. The budget for justice is now forecast to fall an initial 400m next year from 6.6bn in 2017/18 to 6.2bn in 2018/19, then to 6bn for 2019/20. The system is desperate; it cannot endure any more cuts.
4.45pm GMT
NHS England is suggesting it may have to limit what it can provide to patients in the light of the funding crisis it is facing. It has released this statement from Sir Malcolm Grant, its chairman. What is says echoes Bruce Keogh, the NHS England medical director, was saying earlier. (See 3.35pm.)
Statement from Sir Malcolm Grant, chairman of NHS England, on the budget pic.twitter.com/O1moKgq8T4
4.45pm GMT
Today's budget hasn't delivered the wealth redistribution from Baby Boomers to Millennials that some campaigners had been pushing for.
Our money editor Patrick Collinson says:
We expected a budget that would take from the old and give to the young.
What we got was one that gave a few well-signalled bungs to the middle-aged (higher tax thresholds), some giveaways to the youngish (stamp duty cuts, a new railcard) and left the elderly untouched. And as for the very rich? Well, they're still living in paradise.
Related: Philip Hammond shows he is no Robin Hood for younger generation | Patrick Collinson
4.38pm GMT
This is how George Osborne's Evening Standard is covering the budget.
STANDARD: Bitter Sweet Budget #tomorrowspaperstoday pic.twitter.com/nPqadgVs8m
4.35pm GMT
Here is Sadiq Khan, the Labour mayor of London, on the budget.
Beyond belief that the Chancellor didn't mention policing, counter-terrorism or security despite recent attacks and crime rising across the country. Tory Government cuts are making us less safe. #Budget2017 pic.twitter.com/Nsf7VMonxf
4.30pm GMT
My colleague Alan Travis points out that the section in the budget red book on what the government will do to attract "international talent" after Brexit suggests the new immigration rules will be less restrictive than the proposals leaked earlier this year implied.
Budget Red Book says immigration rules to be changed to give 'international talent' quicker route to settlement and for highly skilled students to stay and work. Sharp contrast with leaked Home Office paper denying any chance to settle in UK to all but most highly skilled. pic.twitter.com/49JprUISQx
4.26pm GMT
Today's growth downgrades mean Britain will be sending less aid to the developing world, through the commitment to spend 0.7% of GDP on aid.
The budget Red Book says that Official Development Assistance (ODA) budgets will be adjusted down by 375 million in 2018"19 and 520 million in 2019"20.
4.23pm GMT
As we pointed out earlier, the budget scorecard shows that Philip Hammond has planned a 9bn spending splurge in 2019-20. (See 2.18pm.) Rupert Harrison, who was chief of staff for George Osborne when Osborne was chancellor, thinks he knows why.
The Budget delivers a fiscal boost of about 9bn in 2019-20. Brexit insurance..?
4.16pm GMT
Here are some tweets from Matt Whittaker, the Resolution Foundation's chief economist, on the budget.
Here's that OBR productivity growth downgrade. Output per hour now expected to be 4.6% lower at the start of 2022 than thought in March; biggest downgrade in OBR history pic.twitter.com/bIXY9S7L6e
That will be partly offset in the GDP numbers by a more optimistic outlook for employment: extra 150,000 now assumed to be in work at the start of 2022 relative to the March forecast pic.twitter.com/rf0UrG4q6F
Overall, the various changes in the OBR's forecasts mean GDP is now set to be 500 lower per person at the start of 2022 than was thought back in March. For context, that's just over 1/4 of the drop in GDP per person recorded between 2008 & 2010 pic.twitter.com/7ENgwWPMFq
Bit more context. Latest OBR projections suggest GDP per person will be 7.3% higher than it was just before the financial crisis in 2023 (15 years on). At the same stage after the 1990 recession, GDP per capita was 36.6% higher pic.twitter.com/2933HZrekk
Looking even further back, we're living through the worst decade for productivity growth since Napoleon invaded Russia pic.twitter.com/aiEDLNCCfY
The productivity growth downgrade has a huge effect on average annual pay forecast: down roughly 1,000 in 2022 relative to the March projection. Means pay isn't set to return to pre-crisis level until 2025 pic.twitter.com/xFWNEZ8GBQ
4.06pm GMT
The (widely expected) cut to Britain's productivity growth is the biggest single change in the Office for Budget Responsibility's report today.
The OBR is painting a rather dire picture -- slashing an average of 0.7% percentage points off UK trend productivity growth each year.
Economy now forecast to be 65bn smaller in 2020 than the forecast in the March 2016 Budget. Lack of productivity growth a huge problem. #Budget2017
Qte an achievement for small open economy like UK to be slashing growth forecasts when global economy enjoying most synchronised recovery since 2007 and our biggest trading partner is seeing best growth in a decade.
4.00pm GMT
In his budget speech Philip Hammond announced a range of measures to help universal credit claimants. He said:
First, we will remove the seven day waiting period applied at the beginning of a benefit claim so that entitlement to universal credit will start on the day of the claim. We have looked at reducing the delay at the end of the first month assessment period. But to do so would mean compromising the principle of payments being made on the same day of the month. A key feature of the system which is very important for claimants in managing their budgets. So to provide greater support during the waiting period we will change the advances system to ensure that any household that needs it can access a full month's payment within five days of applying.
We will make it possible to apply for an advance online. And we will extend the repayment period for advances from 6 months to 12 months. Any new universal credit claimant in receipt of housing benefit, will continue to receive it for two weeks. This is a 1.5bn package to address concerns about the delivery of the benefit.
To support these changes the government will roll out universal credit more gradually between February 2018 and April 2018, and roll-out to all jobcentres will be complete in December 2018.
3.47pm GMT
Here is the response to the budget from John McDonnell, the shadow chancellor. And here is an excerpt.
This is a 'nothing has changed' budget from an out-of-touch Government with no idea of the reality of people's lives and no plan to improve them.
Philip Hammond has completely failed to recognise the scale of the emergency in our public services.
3.40pm GMT
One campaign group has cast doubt on the government's ability to enforce laws to make Amazon and eBay pay for VAT fraud, as promised in the budget.
Richard Allen, the spokesperson for Retailers Against VAT Abuse Schemes, which first exposed the issue, said the government is yet to prove that it is capable of enforcing new laws on digital giants. He said:
The government says it will make it easier for HMRC to prosecute Amazon and eBay for facilitating this activity. But we haven't seen the wording yet of the legislation and so we can't be sure as to how precise it will be or if it will leave a loophole which can be exploited by these giant companies' lawyers.
These firms have already admitted they knew about the VAT fraud, so why bother with the proposed legislation? Prof Rita de la Feria, professor of tax law at Leeds University, told the public accounts committee that new legislation was not necessary, it was an issue of enforcement. She was right.
3.39pm GMT
In rather morbid news, the Office for Budget Responsibility has revised up its expected mortality rate.
It now expects 502,000 pensioners to die each year, up from 476,000 previously (which will mean less spending on pensions).
This is consistent with life expectancy increasing less than projected since mid-2014. By 2022, the population in this age group [adults aged above the state pension age] is 1.2% lower than previously assumed.
3.38pm GMT
The Scottish government says Scotland has been short-changed by the budget. Here is an extract from the statement from Derek Mackay, the Scottish government's finance minister.
Scotland's resource block grant for day to day spending will fall by over 200m in real terms next year and while money for the NHS in England should see a proportionate share come to Scotland, cuts in other UK departments mean that instead of receiving over 30m this year the Scottish Government will receive only 8m - a fraction of that spending.
The reality is that over 1.1bn of the money being promised to Scotland over the next four years are loans that the Scottish government cannot spend directly on frontline public services and that have to be paid back to the Treasury.
3.35pm GMT
Bruce Keogh, medical director of NHS England, says he does not think the extra money for the NHS goes far enough. He says longer hospital waits are likely or unavoidable.
Personal view...Budget plugs some, but def not all, of NHS funding gap. Will force a debate about what the public can and can't expect from the NHS. Worrying that longer waits seem likely/unavoidable.#NHS
3.22pm GMT
Here are some extracts from Jeremy Corbyn's speech in response to the budget. He said the government had a "record of failure" and said the budget amounted to "accounting tricks and empty promises".
On the budget generally
It's a record of failure with a forecast of more to come ...
The test of a budget is how it affects the reality of people's lives all around this country. I believe as the days go ahead and this budget unravels, the reality will be a lot of people will be no better off and the misery many are in will be continuing.
What sort of strong economy is that? What sort of fit for the future is that?
Three new pilot schemes for rough sleepers simply doesn't cut it. It is a disaster for those people sleeping on our streets, forced to beg for the money for a night shelter. They're looking for action now from government to give them a roof over their heads.
The chancellor's solution to a failing system causing more debt is to offer a loan, and the six-week wait, with 20% waiting even longer, simply becomes a five-week wait.
This system has been run down by 3 billion of cuts to work allowances, the two-child limit and the perverse and appalling rape clause, and caused evictions because housing benefit isn't paid direct to the landlord.
We have had the rhetoric of a long term economic plan that never meets its targets when what all too many are experiencing is long term economic pain - and the hardest hit are disabled people, single parents and women.
The chancellor has not been clear today - not for NHS workers, our police, firefighters, teachers, teaching assistants, bin collectors, tax collectors or armed forces personnel. Why does the government think its OK to under pay, over stress and under appreciate all those that work within our NHS?
With this government delivering the worst rate of house building since the 1920s and 250,000 fewer council homes, any commitment would be welcome.
But we've been here before. The government promised 200,000 starter homes three years ago. Not a single one has yet been built in those three years.
We were promised with lots of hype a revolutionary budget, the reality is nothing has changed. People were looking for help from this budget and they have been let down: let down by a Government that, like the economy they have presided over, is weak and unstable and in need of urgent change. They call this a budget fit for the future, the reality is this is a government no longer fit for office.
Beef in the Commons as Conservative takes issue with Jeremy Corbyn on social care pic.twitter.com/S27207iMSd
3.17pm GMT
Jason Lowes, planning partner at property consultancy Rapleys, says the budget is no 'magic bullet' for Britain's housing problems.
"While many in the property industry will be buoyed by the reforms to Stamp Duty Land Tax for first time buyers and Business Rates, the lack of progress on planning risks undermining what was, we were led to believe, intended to be a blockbuster housing Budget."
"In order to truly help first-time buyers in the short term, the government would need to offer a far greater incentive. We can learn from our friends in Australia who offered significant grants to first-time buyers of between 4,000 and 10,000, this level of investment proved to make a real difference to the number of first homes bought.
As it stands, first-time buyers in the UK are going to have to rely on the delivery of the Governments house building investment and initiatives to deliver affordable housing, but this could take some time.
"The Government's big spending commitments for stamp duty giveaways and tax cuts prioritised higher earning households, with little support for people who need it most.
"The Government could have demonstrated it was on the side of low income families by lifting the freeze and providing a clear plan to deliver 80,000 genuinely affordable homes a year in England, instead of more funding for people who can already afford to buy."
3.08pm GMT
The Office for Budget Responsibility sound rather irked with the government over its failure to give more information about Brexit.
The independent fiscal watchdog says it "once again" asked the government to provide detail on likely trade and migration policies after Britain has left the EU, and some clarity on what we might pay into the EU budget.
Given the uncertainty regarding how the Government will respond to the choices and tradeoffs it faces during the negotiations, we still have no meaningful basis on which to form a judgement as to their final outcome and upon which we can then condition our forecast.
3.04pm GMT
This is what a Guardian Comment panel are saying about the budget. There are contributions from Matthew d'Ancona, Faiza Shaheen, Jonathan Freedland and Frances Ryan.
3.00pm GMT
Ouch! The OBR has also estimated that selling the government's shares in RBS will realise a loss of 26.2bn.
That's based on today's share price, compared to the cost of the bailout nine years ago.
2.53pm GMT
This is from the Labour MP Stella Creasy.
Just to be clear then, government planning to spend more on brexit than the NHS - 3bn to 2.8bn. Look forward to seeing the bus with that on driving around... #brexithaos #budget17
2.46pm GMT
The Office for Budget Responsibility is damning about Philip Hammond's proposal to abolish stamp duty for first-time buyers for homes worth up to 300,000. This is what it is saying.
We expect this to increase house prices by 0.3 per cent, an estimate consistent with our published price elasticities for stamp duty changes. Most of this effect is expected to occur in 2018.
We assume that a temporary relief would feed one-for-one into house prices, but a permanent one will have twice that effect. On this basis, post-SDLT [stamp duty land tax prices] prices paid by FTBs [first-time buyers] would actually be higher with the relief than without it. Thus the main gainers from the policy are people who already own property, not the FTBs themselves.
Eligibility criteria match those of the post-crisis 'stamp duty holiday', although then the relief stopped at 250,000. HMRC published an evaluation part way through that holiday. It concluded that the majority of the value of relief had fed through to higher house prices and that it 'has not had a significant impact in terms of improving the affordability of residential property for FTBs. It is estimated that most of the buyers who benefited from the relief would have purchased property in its absence anyway (ie are deadweight).' Confirmation that the relief would end was announced alongside the evaluation.
A rate of 5% will be charged on the value between 300,001 and 500,000. But FTBs buying a property for 500,001 or more will not benefit from the relief at all, so a purchase at that price would be liable to 5,000 more in SDLT than one at 500,000.
2.44pm GMT
Now this is interesting. The government's deficit figures include 15bn from the sale of some of the taxpayers' stake in Royal Bank of Scotland.
That sales, over the next five years, allowed Philip Hammond to boast about cutting the national debt as a share of GDP from next year.
Despite the deterioration in our underlying forecast, the tax and spending giveaway, and extra lending through help to buy, the government has ensured that net debt still falls fractionally as a share of GDP in 2018-19 and by more beyond.
It has achieved this largely by announcing fresh sales of RBS shares and by passing regulations that ease local and central government control over housing associations in England.
2.27pm GMT
Bad news for workers - the OBR has slashed its forecasts for pay growth over the next few years.
It now expects wages to rise by just 2.3% next year, down from 2.7% previously. Pay increases now aren't expected to hit 3% (the current inflation rate) until 2021, a whole year later.
OBR economic summary with revisions. The bit highlighted in red by me deserves an "ouch". pic.twitter.com/N17GRUHI5D
2.20pm GMT
The Office for Budget Responsibility's verdict is out!
The independent watchdog confirms that it has cut its productivity and growth forecasts:
We have revised down our productivity and GDP forecasts and, despite lower borrowing this year, revised up our forecast for the budget deficit. The chancellor has raised the deficit further with higher public spending and a net tax giveaway.
2.18pm GMT
This is table 2.1 from the budget red book, the budget scorecard. This is the most important and revealing chart in the whole book, because these are the numbers that show exactly how much the Treasury is spending and raising from all the 69 measures in the budget.
Look at the figures at the bottom. These show that, overall, it's a giveaway budget. In the next financial year Hammond will be spending an extra 6bn compared with what was planned (4.4bn extra on spending, and 1.6bn extra on tax cuts) and by 2019-20 the giveaway is worth almost 10bn.
2.08pm GMT
Shares in Britain's housebuilders have been hit by Hammond's threat to compulsorily purchase land if they don't build on it.
Barratt, Persimmon, Taylor Wimpey and Berkeley are leading the FTSE 100 fallers, suggesting the City thinks the measure may have teeth.
2.05pm GMT
You can read all the Treasury documents on the Treasury website here.
The most important is the 86-page budget red book (pdf).
2.00pm GMT
Jeremy Corbyn is responding to the budget now. He is withering, and particularly critical of the lack of extra spending on social care and education. We will publish lengthy extracts from his speech a bit later when we have the quotes.
1.56pm GMT
Well, that wasn't quite as boring as some people were expecting. Philip Hammond has a reputation for being rather humourless, but he injected far more jokes than is usual for a budget speech and he managed to conclude with a surprise stamp duty announcement likely to play well with the tabloid press.
Whether or not abolishing stamp duty for first-time buyers will actually bring down prices is an entirely different matter; if anything, it seems just as likely that it will allow sellers to increase prices. And in cash terms, it is not a huge giveaway.
1.53pm GMT
The chancellor tried to distract us with some jokes, the stamp duty rabbit, and even a packet of cough lozenges from the PM.
However the underlying message is that the UK economy is rather weaker than we thought back in March. Growth is going to slow steadily over the next three years - not what's needed as the country faces the Brexit unknown.
This is the first time in modern history that the official UK GDP growth forecasts are below 2% every single year over the forecast horizon
Hammond boasts of more jobsabout to announced lower growth forecasts, and higher borrowing. Lower future productivity growth to blame.
Productivity downgrade is massive - growth down by 0.4% in most years as a result
1.47pm GMT
Hammond did have a rabbit in the hat after all - the decision to abolish stamp duty for first-time buyers on properties up to 300,000 got a healthy roar from his own MPs.
Tom Tugendhat, for example:
Abolishing stamp duty on first time buyers should save 5k for those buying homes worth 300k. Great news for people across our country.
At bloody last. Stamp duty for FTBs has gone.
Stamp duty abolished for first time buyers on the properties up to 300k or, in high price areas like London, on the first 300k of properties up to 500k. Worth 5k saving for 80% of first buyers.
Tory MPs roar with approval#Budget2017
Stamp duty change: helps young people already wealthy enough to be thinking about house buying. And helps boost house prices which were in danger of falling. Great news, but not really for poor young people.
1.39pm GMT
Hammond says he wants to help people saving to buy a home.
An extra 10bn has gone into the help-to-buy equity loan.
1.37pm GMT
One million homes for the Cambridge-Milton Keynes-Oxford corridor "
"Last week the National Infrastructure Commission published their report on the Cambridge-Milton Keynes-Oxford corridor.
Today we" commit to building up to 1 million homes [on the Cambridge-Milton Keynes-Oxford corridor] by 2050" #Budget2017 pic.twitter.com/Ow7pCKon2P
1.36pm GMT
Hammond says the government is committing to building homes in the Oxford-Cambridge corridor. Infrastructure will be built to support new homes, he says.
1.35pm GMT
Hammond says planning reform is needed too.
The government wants homes built in high-demand areas and around transport hubs.
1.34pm GMT
The chancellor has announced plans to legislate for councils to be allowed to impose a 100% premium on properties left vacant.
Several councils, including a number in London, have called for the current 50% cap to be raised.
1.32pm GMT
Hammond says young people feel concerned about their prospects in the housing market, with house prices increasingly out of reach for many.
The number of young people owning their own home has dropped from 59% to 38%, he says.
1.28pm GMT
Hammond turns to housing.
"We will provide Kensington and Chelsea Council with a further 28m for mental health services, regeneration support for the surrounding areas and a new community space for the Grenfell United"
1.26pm GMT
Hammond turns to taxes for digital companies. He says income tax will be applied to sales abroad. He says all online market places will be jointly liable with sellers for VAT.
1.25pm GMT
The Treasury has tweeted the details of the NHS funding changes (which seem to fall short of the 4bn emergency injection called for by the NHS England chief Simon Stevens).
Chancellor: I am...making an additional commitment of resource funding of 2.8bn to the NHS in England #Budget2017 pic.twitter.com/YIRtqBDTxc
"...an additional 10bn"over the course of this Parliament to support the [NHS's] Sustainability and Transformation plans" #Budget2017 pic.twitter.com/5VLGTWyQFz
1.24pm GMT
Hammond says he has listened to concerns about the costs of uprating business rates.
He says he will bring forward the uplifting of this by the CPI inflation index not RPI. It will switch to CPI in April 2018, two years earlier than planned. That will save businesses 2.3bn, he says.
1.21pm GMT
On the VAT registration threshold, he says, at 85,000, it is by far the highest in the OECD.
But that does keep most small businesses out of VAT, he says.
1.21pm GMT
On alcohol duty, Hammond has outlined plans to increase duty on high-strength, low-quality alcohol from 2019, but duties on other ciders, wines, spirits and on beer will be frozen.
Chancellor announces duty on wine, spirits, beer and more expensive cider is to be frozen, while duty on stronger, cheaper cider will go up #budget2017
1.20pm GMT
The decision to freeze fuel duty again has been criticised by the Green party co-leader Jonathan Bartley.
Chancellor "proud" of 46bn subsidy freezing fuel duty escalator and so fuelling climate change? Really?! #Budget2017
1.19pm GMT
Hammond turns to health.
1.16pm GMT
Hammond turns to duty.
"From April 2019 I will also freeze short-haul Air Passenger Duty rates and long-haul economy Air Passenger Duty paid for by an increase on Premium class tickets and private jets." #Budget2017 pic.twitter.com/IPvkzGNhAN
1.15pm GMT
The Treasury tweets:
Chancellor:"duties on other ciders, wines, spirits and on beer will be frozen #Budget2017 pic.twitter.com/PipijhlhwD
1.13pm GMT
Liberal Democrat MP Layla Moran says Hammond has heeded the complaints about universal credit.
Universal Credit. Chancellor recognises the concerns. 7 day waiting period removed. Advances system can be accessed within 5 days. Housing benefit will be extended for two weeks to cover overlap.
Heidi Allen- squatting in the floor next to a load of Tory men in seats - gives a thumbs up to Universal Credit change
1.13pm GMT
Hammond turns to tax thresholds.
1.12pm GMT
Hammond turns to the "national living wage".
From April [the national living wage] will rise 4.4% from 7.50 an hour to 7.83.
1.10pm GMT
Hammond says many people are feeling pressure on their budgets.
Because we are all in politics to make people's lives better, he will make changes.
1.07pm GMT
Hammond says they will open talks on a Belfast city deal, with a view to having similar deals across Northern Ireland.
1.06pm GMT
Hammond says his plans involve 2bn more for the Scottish government, 1.2bn more for Wales and 650m more for Northern Ireland.
He is used to getting his "ear bent" by the 13 Scottish Tory MPs, he says. They have persuaded him to exempt Police Scotland and the Scottish fire service from VAT.
1.04pm GMT
Hammond says he is announcing 30m to improve digital connectivity on the trans-Pennine route.
He is announcing a new city deal for the West Midlands.
1.02pm GMT
Hammond says he and the education secretary will initiate a national retraining scheme.
He has accepted TUC advice to continue funding Unionlearn, he says.
1.01pm GMT
Hammond turns to teaching, and maths.
He announces measures to promote maths teaching. These plans were trailed overnight.
Don't let anyone tell you I don't know how to show the nation a good time.
1.01pm GMT
The chancellor's Top Gear/Grand Tour joke has attracted plenty of groans:
Driverless vehicles had to make an appearance (just so zeitgeist) - and an excuse for a terrible Top Gear joke. #StopIt.
'Driverless vehicles' prompts a Jeremy Clarkson joke - two in fact! #Budget2017 pic.twitter.com/uyjaEpdnNg
12.59pm GMT
Hammond says he will explore new taxes on plastic waste. People have seen through the BBC's Blue Planet 2 how much damage plastic does.
12.58pm GMT
Hammond turns to driverless vehicles. He knows that Jeremy Clarkson does not like them. But there are other good reasons to pursue them too, he says.
I'm sorry, Jeremy, but I know it's not the first time you've been snubbed by Hammond and May.
"From April 2018 the first year VED rate for diesel cars that don't meet the latest standards, will go up by one band" #Budget2017
12.55pm GMT
Hammond says the government will replace European investment fund money if necessary.
12.55pm GMT
Hammond says a new high-tech business is founded in the UK every hour. He wants that to be every half hour.
He says he is investing more than 500m "in a range of initiatives from artificial intelligence, to 5G and full fibre broadband".
12.54pm GMT
Chancellor: We're allocating a further 2.3 billion for investment in R&D and we'll increase the R&D Tax credit to 12% #Budget2017 pic.twitter.com/oHlJGE3arQ
12.53pm GMT
Here's our Autumn Budget 2017 economy snapshot #Budget2017: pic.twitter.com/11l0ylrzT3
12.53pm GMT
Hammond says the government is investing in infrastructure.
He says raising productivity is the central mission of the Treasury.
12.52pm GMT
Hammond says the OBR says the government is on course to meet its fiscal targets.
Borrowing is forecast to be 49.9bn this year - 8.4bn lower than forecast in the spring budget.
12.49pm GMT
Hammond says he intends to use the headroom he created in his first budget to reduce debt and provide help to families too.
12.48pm GMT
Hammond says the OBR expects debt to peak this year.
But Labour wants higher debt.
12.48pm GMT
Hammond says productivity has not improved.
For the last 15 budget events, the OBR has forecast productivity growth at 2%. But that has been revised downwards.
12.46pm GMT
12.45pm GMT
Hammond says the OBR is forecasting another 600,000 people in work by the 2020s.
12.45pm GMT
Hammond says he will do the OBR forecasts now.
"This is the bit with the long, economicky words in it," he says, joking about Michael Gove.
12.44pm GMT
He will stick to drinking water, he says, although he is tempted by something more exotic, he says (referring to drink).
He asked the PM to bring some cough sweets just in case, he jokes.
12.43pm GMT
Hammond says he has a clear vision of what a global Britain looks like: a prosperous and inclusive economy, where everyone can shine, and the dream of home ownership is open to all, a civilised, tolerant place, an outward-looking nation, that is a force for good in the world.
That is the Britain he wants, he says. He will not build it today. But he will build the foundations.
12.43pm GMT
"We have already invested almost 700m in Brexit preparations and today I am setting aside over the next 2 years a further 3bn" #Budget2017 pic.twitter.com/wKGTLQsKvX
12.42pm GMT
Hammond says he understands the frustration of families whose budgets are under pressure.
So he chooses a balanced approach, he says.
12.41pm GMT
Hammond says the government chooses the future, and chooses "to run towards change".
Britain is at the forefront of the technological revolution, he says.
12.40pm GMT
Hammond says the Brexit talks are at a critical phase.
He is clear that one of the biggest boosts he can give to business is to "make early progress in delivering [May's] vision, with an implementation plan that allows businesses [to invest with confidence]".
12.38pm GMT
Hammond says the economy "continues to grow, continues to create more jobs than ever before and continues to confound those who talk it down".
The future will be full of opportunities.
12.37pm GMT
Philip Hammond is starting now.
12.36pm GMT
The Independent's political editor, Joe Watts, spotted something interesting during PMQs...
Chancellor Philip Hammond just received a note on the frontbench, that looks like an alteration to his speech. Large text with a section crossed out. #Budget2017
12.35pm GMT
Labour's Yvette Cooper also wants to see Universal Credit reformed:
Problems with Universal Credit are not just about 6wk wait - big & unfair cuts in income for families, esp young working parents #Budget2018 https://t.co/cyumyzNwql
12.33pm GMT
Labour's Toby Perkins says people with severe disabilities are worse off on universal credit because there is no disability component. Whatever is in the budget, UC will shame the government, he says.
May says the government spends 50bn a year on disability benefits. UC is helping people get into work, she says.
12.26pm GMT
Hearing now that altho Hammond won't announce extra cash for nurses' pay today BUT he will say if independent body recommends rise govt will fund it and with new money from outside the existing NHS budget
12.26pm GMT
Not long to wait now....
Today I will present my first Autumn Budget to @HouseofCommons - a forward looking Budget to embrace change, meet our challenges head on and seize the opportunities for Britain. #Budget2017 pic.twitter.com/JwBIo92WgC
12.24pm GMT
PMQs - Snap verdict: Who cares, really, given it's budget day, which will be something of a relief to Corbyn, who didn't really cause May much trouble. She made a crass error in her final reply, but otherwise she brushed aside Corbyn's attacks on Brexit and on tax avoidance with surprising ease. Surprising, because Corbyn was raising an issue, Brexit and Ireland, where the government's position is extraordinarily weak. But it was a revelation to hear Corbyn raise Brexit in the first place because generally it is a topic that he has avoided (probably because it is an area where Labour itself is divided, and where Labour's stance is in some respects fudged). Still, all soon forgotten ...
12.17pm GMT
Corbyn says the government voted down an amendment to the EU withdrawal bill last night on workers' rights. Turning to tax avoidance, he asks if May will adopt new measures on this. Or is she threatening to turn Britain into a tax haven?
May says she will take no lectures on this. The government has raised more than 160bn by measures on tax avoidance, she says.
12.17pm GMT
A thumbs-up for Jeremy Corbyn's choice of question.....
Given that in the long term the Brexit outcome will matter much more for our economy than today's Budget, probably a very good thing that it's at least being discussed at PMQs for once
12.10pm GMT
Michel Barnier said bankers would lose their passports, says Corbyn. But David Davis has promised free movement for bankers. Who else will get free movement? Nurses?
May says Corbyn borrowed this question from Vince Cable, the Lib Dem leader. There will be no immigration rules, she says. She says she wants to get on to deal with the future trading relationship. Labour cannot decide whether it wants to be in or out of the single market and customs union.
12.07pm GMT
Jeremy Corbyn says he hopes MPs will join him in sending solidarity to eastern Nigeria, where 50 people were killed in a suicide bombing.
The Irish PM has said the British do not seem to have thought through Brexit. Can May reassure him that there will be no hard border in Ireland?
12.03pm GMT
Uh-oh, Chancellor just coughed and reached for a glass of water
12.02pm GMT
This is from the Telegraph's Michael Deacon.
Theresa May takes seat in Commons: solid cheers from Tories. Philip Hammond takes seat in Commons: token murmur
12.01pm GMT
As Hammond prepared to deliver the budget, here's a reminder of how the national debt has risen (as a share of GDP) since the financial crisis.
One set of numbers I doubt we'll hear much about today. #Budget2017 pic.twitter.com/rwxvE9DFHL
11.59am GMT
PMQs is starting soon.
UPDATING LIVE: Here are the lucky MPs who will be questioning the Prime Minister from noon. https://t.co/KODm7GEjW8 pic.twitter.com/jcsjsmUtIZ
11.57am GMT
Philip Hammond will announce that 4.5m raised from the fines imposed on banks for Libor-rigging will go to charities helping veterans, the Sun reports.
11.52am GMT
A good spot from Business Insider's Thomas Colson.
Tory MPs all tweeting a cropped Times headline which says "Factory orders keep booming since Brexit"
Actual headline: "Factory orders keep booming since Brexit cut value of pound" pic.twitter.com/aINh4I0zP0
11.50am GMT
Philip Hammond is going to promise to eliminate rough-sleeping by 2027, the Evening Standard's Joe Murphy reports.
BUDGET - help for rough sleepers in Hammond's red box -- and a 240 million warchest for infrastructure investment by London boroughs, via Biz Rates reformhttps://t.co/A8aAMsk67r
A new homelessness reduction taskforce will be launched, aiming to halve the number of rough sleepers by 2022 and reduce it to zero by 2027.
The budget will commit 20 million to schemes that support people who are on the brink of homelessness. "We want everyone to have a roof over their heads, and that's why we've committed to eliminating rough-sleeping by 2027," Mr Hammond said.
11.46am GMT
Treasury team's attempt to recreate Abbey Road cover backfired pic.twitter.com/AncCX79v90
The Long and Winding Road might be more appropriate, given the government's efforts to cut the deficit since 2010.....
11.43am GMT
Downing Street said the budget will adopt a "balanced approach". Just to remind everyone how constrained it is, the Treasury has just tweeted out this, reminding us all that public sector debt stands at 1.7 trillion.
You might have heard of public sector debt, but what does it mean? Watch our video to find out. #Budget2017 pic.twitter.com/EG1sG2bUJO
11.38am GMT
This is from ITV's Robert Peston.
I am told housing measures are "a bit of a hotchpotch" - ie perhaps 10 in total, so the challenge will be working out how they fit together and their collective impact #Budget2017
11.36am GMT
City experts are warning that the pound could suffer if the budget fails to impress Conservative MPs.
Kathleen Brooks of City Index says the "biggest market-moving event" will be Hammond's own performance, amid those rumours that he could be reshuffled out of the Treasury.
Brexiteers are circling for his job, and this budget is the battlefield for mounting Brexit tensions within the cabinet. If the chancellor bombs then the knives will be out. If May is forced to sack her chancellor in the aftermath of this budget then this could be a big negative for the pound. Just last week the pound dropped 1.5% on rumours (unsubstantiated) in the Sunday Times that the Tory party were getting ready to oust May.
11.29am GMT
Philip Hammond and his team of Treasury ministers have just emerged from Number 11.
After a quick pose with the budget red box, the chancellor has boarded his government car for the short drive to the House of Commons.
11.29am GMT
We've had the usual briefing about the budget cabinet meeting this morning, and it's fair to say we're little wiser than we were before.
The budget will, we were told by May's spokesman, "adopt a balanced approach" between preserving the public finances and investment in areas such as the NHS and housing.
11.27am GMT
Shelter has some interesting research that shows why Philip Hammond really needs to think about policies on housing - and not just home owners but renters too.
In 2010, the Conservative party was ahead by a few points among people living in the private rented sector, but in 2015 Labour had a lead of just over 10 points with that group - and by 2017 it was well over 20 points. That rises to over 30 for the social rented sector. The Tory lead has even been squeezed to just a few points for those with mortgages.
11.23am GMT
As we mentioned earlier, if, as expected, Philip Hammond doesn't raise taxes significantly, that will be unusual because the first budget after a general election normally sees the chancellor squeezing taxpayers as hard as he can get away with. Paul Johnson, director of the Institute for Fiscal Studies, has the figures.
One tradition Mr Hammond unlikely to adhere to today: a big tax hike in the first budget after an election. pic.twitter.com/YIPwudAjZm
11.17am GMT
In a post on his Facebook page Robert Peston, the ITV political editor, predicts this could be the most dull budget he has ever covered.
In the round, however, I wouldn't be at all surprised if this is the most dull budget of the 60 odd (if you include autumn statements) that it's been my joy and privilege to cover in an absurdly long career as a hack.
Which points to this government's most serious weakness.
And there will of course be decisions announced today that will have an impact on people's lives. There will be more money for the NHS, although not as much as they have asked for, there will be new policies to try to encourage house-building, there will probably be changes to universal credit, there will be measures that will make a difference to firms around the country.
But for the Treasury today there's no big bazooka - boring is good.
11.06am GMT
Here are two stories from today's papers about Theresa May's relationship with Philip Hammond.
Theresa May's relationship with Philip Hammond is close to breaking point this morning after No 10 was forced to take control of a last-minute Budget briefing amid fears the Chancellor's latest financial statement will fall flat.
Downing Street ordered the Treasury to rush out an announcement on schools last night after alarm bells started ringing over what one Cabinet source described as "the worst budget build-up in history" ...
Mrs May is refusing to move or fire her long-standing former political ally in a January overhaul of her top table, despite a series of bitter clashes with him this year and in the Budget's run up.
A close ally said: "There's no doubt Hammond would do 'a Geoffrey Howe' on her from the backbenches.
11.05am GMT
Here's a photo from this morning's cabinet meeting, via the prime minister:
The Cabinet met this morning to discuss #Budget2017 which @PhilipHammondUK will deliver later today - setting out how my Government is building a Britain fit for the future: pic.twitter.com/7HOrgziVpW
10.59am GMT
David Cameron was known for his 'essay crisis' style of government. But has Philip Hammond caught the habit?
The Daily Mirror have spotted that a light was blaring at Number 11 at 4.30am this morning, suggesting a late finish, or an early start, ahead of the chancellor's big speech.
Did Philip Hammond pull an all-nighter before Budget 2017?https://t.co/s8QBJiZ8gK pic.twitter.com/gyHxtBozhj
10.46am GMT
Whatever Philip Hammond announces today, Britain's public sector faces hefty spending cuts over the next few years.
That's due to austerity measures announced since 2010, as our colleague Alan Travis explains:
The Institute of Fiscal Studies says that existing plans mean that there will be a further 12bn View Site