The Chancellor will apply IR35 employment changes to private sector to large and medium sized businesses, having already implemented a crackdown in the public sector on employees who are paid via personal services companies to avoid paying tax. Currently, many workers function as self employed despite working only for one company, by setting themselves up as a 'personal services companies' (PSCs), as this provides a National Insurance tax break.

Hammond announced he would push on with raising the basic tax rate threshold, despite calls for him to abandon the Tory manifesto commitment. The basic rate was raised to £11,850 in April. That will now be boosted to £12,500. At the same time, the higher rate will go up from £46,350 to £50,000. Raising these tax thresholds is an effective tax cut.

The Chancellor has announced a cut to stamp duty for first-time buyers of shared-ownership homes worth up to £500,000. The measure is retrospective, so anyone who bought a house since the last Budget will benefit. A further £500m is also being made available for the Housing Infrastructure Fund, to help build 650,000 homes.

The help to buy scheme which was expected to end in 2021 but has been extended until 2023.

Kevin Roberts, director of Legal & General Mortgage Club comments: “Today’s extension of the Help to Buy scheme to 2023 has provided much-needed clarity over the scheme.