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AS THE COUNTRY prepares for Brexit , the Chancellor acknowledged in his speech that “ too many families are feeling the squeeze .”

He said inflation would reach 2.4 % in 2017 – higher than the Bank of England ’ s long-term target of 2 % – before falling back to 2.3 % in 2018 and 2 % in 2019 . He expects wage rises to outstrip inflation during this period , although many households who rely on savings interest and benefits will be anxious about the impact of rising prices on their family finances .

CHANGES TO TAX

As previously announced , the income tax personal allowance will rise to £ 11,500 in April , with the higher rate threshold rising to £ 45,000 .

The personal allowance is scheduled to rise to £ 12,500 , and the higher rate threshold to £ 50,000 , by the end of this parliament in 2020 .

It was announced that there would be a tax increase for the self-employed . National Insurance Contributions – simply another type of tax we all pay – will increase for self-employed individuals from April next year said the Chancellor . It was said that this would happen when Class 2 NICs are abolished in 2018 and Class 4 NICs increase from 9 % to 10 %. They will rise to 11 % in 2019 . However , this proposal was overturned by the Prime Minister less than a week later .

Furthermore , in a bid to ‘ enhance the fairness of the system ’, Hammond has called for further push to penalise professionals who avoid tax .

SHAREHOLDERS

Director shareholders will see a tax break reduced on the dividends they receive . Tax free dividend allowance will be reduced from £ 5000 to £ 2000 from April 2018 . Affecting those who own a small business and people with large portfolios of shares .

EDUCATION AND CAREERS

The Chancellor said that perhaps the most important thing government can do is to invest in the future . Invest so our children and grandchildren can make the most of the opportunities which present themselves .

He said this begins by addressing the skills gap . Giving every child the opportunity to go to a good school regardless of background . This will be done by investing in education and skills , which in turn will help close our productivity gap and deliver greater prosperity .

This holds the key to inclusive growth , which will see an economy that works for everyone said the Chancellor .

Due to the prevalent skills gap the Chancellor discussed the fear for the next generation , posing the key question , will our children enjoy the same opportunities we did ?

He went on the ensure this doubt ends with the introduction of T-Levels – technical qualifications , an alternative to A-levels – for 16- to 19-yearolds .

T- levels will see a clearer system qualifications devoted to supporting our young adults into quality jobs , helping them

gain world- class skills . One that replaces the 13,000 or so , different qualifications , with just 15 clear , career-focused routes . Hammond said , once this programme is fully rolled out , we will be investing an additional £ 500m a year in our 16-19 year olds .

Increasing by over 50 % the number of hours training for 16-19-year-old technical students , including a high-quality 3-month work placement for every student , so when they qualify , they are genuinely “ work-ready ”.

DRIVING

As of April 2017 , Vehicle Excise Duty ( VED ) rates for cars , vans and motorcycles registered before April 2017 will increase by the Retail Prices Index ( RPI ).

Road User Levy rates and Heavy Goods Vehicle VED rates will be frozen from April 2017 .

The government is looking to work with the industry to update the levy , so hauliers that plan their routes efficiently will be rewarded . This is with the aim of improving air quality and efficient use of the UK ’ s roads .

The government will continue to invest to support the development of driverless cars , which should improve road safety and bring down car insurance premiums over the course of the next decade .

NATIONAL LIVING WAGE

The National Living Wage for working people over the age of 25 will go up from £ 7.20 an hour to £ 7.50 an hour in April 2017 . This means an extra £ 500 a year for someone working full time .

INFRASTRUCTURE

An investment of £ 200m will be made to improve fibre optic broadband in rural areas alongside a £ 16m investment in 5G technology .

Work will be undertaken to relieve what the Chancellor called ‘ pinch points ’ in the national road network , with £ 220m earmarked to help people to commute with ease between towns and cities and to alleviate urban congestion .

‘ Hammond has called for further push to penalise professionals who avoid tax ’

SMOKING

Bad news for the smokers out there , here ’ s what the Chancellor has issued .

• New minimum excise duty is being introduced on cigarettes targeting the cheapest tobacco .

• A pack of 20 cigarettes will cost 35p more

• 30-gram pack of hand rolled tobacco will cost 42p more