![\"budget](\"https:\/\/cdn.images.dailystar.co.uk\/dynamic\/205\/photos\/933000\/620x\/budget-2018-uk-739197.jpg?r=5bd6c16936c84\")
<\/p>\nHammond is facing the most challenging budget of his tenure as chancellor amid uncertainty over the future of Brexit and pressure to ease the effects of austerity.<\/p>\n
But despite increasing turmoil over Brexit, the chancellor has insisted the economy is in good shape as the country prepares to leave the EU.<\/p>\n
"The fundamental health of the economy is plain to see. We are operating under a cloud of uncertainty. But notwithstanding that the behaviour of the economy is buoyant," he said in an interview with the Sunday Telegraph.<\/p>\n
Nevertheless, Hammond has little room for manoeuvre until a Brexit deal is secured, especially with public spending pledges, including an extra \u00a320billion for the NHS, at the top of his agenda.<\/p>\n
Ahead of the financial statement, former pensions minister and Liberal Democrat MP Steve Webb has explained what he expects Hammond to announce in the House of Commons.<\/span><\/span><\/p>\n
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AUTUMN BUDGET 2018: Philip Hammond is set to announce his financial plans to MPs today (Pic: GETTY)<\/p>\n
Tax on fuel, alcohol and fags<\/strong><\/p>\n Duty on fuel, alcohol and tobacco \u2013 the so-called \u201csin taxes\u201d \u2013 have historically been low-hanging fruit for chancellors looking to raise funds for the public coffers.<\/p>\n For smokers and drinkers, Webb, who served in the coalition government of David Cameron, does not expected this budget to be any different.<\/p>\n He believes tobacco and alcohol duty are likely to be raised in line with inflation \u2013 currently 2.4% as of September.<\/p>\n In last years budget, Hammond hiked tobacco duty at the rate of inflation \u2013 at the time 3% \u2013 plus a further 2%, punishing Britains estimated 7.5 million smokers.<\/p>\n If alcohol goes up in line with retail prices index \u2013 currently 3.4% \u2013 as it typically does, an extra 2p will be added to a pint of beer.<\/p>\n \u201cIt would be reasonable to expect cigarette tax to go up,\u201d Webb said.<\/p>\n \u201cWith alcohol, sometimes theyre a bit picky. Maybe theyll put it up on beer or whisky and not others.\u201d<\/span><\/span><\/p>\n CHANCELLOR: Hammond, poses with his speech in his office in Downing Street (Pic: GETTY)<\/p>\n Related Articles<\/p>\n \n \u201cNo fireworks but some giveaways\u201d\n <\/p>\n Former MP Steve Webb<\/cite>\n <\/p>\n<\/blockquote>\n Income tax<\/strong><\/p>\n Chancellors are usually loathe to increase income taxes, particularly for the core demographics that vote for their party.<\/p>\n Currently, the three main bands of taxation are 20%, 40% and 45% of income on earnings above a certain level.<\/p>\n Hammond is not expected to shift the goalposts for these bands, according to Webb, who works for financial services firm Royal London. <\/p>\n \u201cI dont think there will be a big headline-grabbing rise on income tax,\u201d he said.<\/p>\n But Webb said Hammond is likely to find tax increases in \u201cobscure places\u201d such as house insurance, insurance premium tax and a levy on internet companies.<\/p>\n Webb said the levy on internet firms \u2013 the so-called \u201cAmazon tax\u201d \u2013 \u201ccould put up the price of what we buy online\u201d because the burden is passed on to the consumer. <\/p>\n PREDICTIONS: Former MP Steve Webb does not think there will be 'fireworks' in the budget (Pic: GETTY)<\/p>\n Universal Credit<\/strong><\/p>\n The Department of Work and Pensions (DWP) is facing demands to halt the mass roll-out of Universal Credit (UC) until no more claimants are pushed "over the edge" and into debt.<\/p>\n Low income families and individuals in receipt of the all-in-one benefit complain they are being driven into debt because of delays in issuing the new payments.<\/p>\n DWP secretary Esther McVey insisted the system \u2013 which is intended to ensure work always pays \u2013 was helping the jobless into employment, but acknowledged there was a need to "adapt and change\u201d.<\/p>\n Webb said Hammond may use his budget to pledge some funds to help hard-up families transitioning to Universal Credit. <\/p>\n \u201cWe could see some concessions on Universal Credit,\u201d Webb said.<\/p>\n \u201cTheres been a lot of fuss about making claimants wait five weeks to get your money.<\/p>\n \u201cIts quite messy if youre in and out of work. Its quite possible that hell find some money to improve Universal Credit.\u201d<\/p>\n Related Articles<\/p>\n COUGH UP: Webb believes tobacco duty will be hiked in line with inflation (Pic: GETTY)<\/p>\n Will Hammond end austerity?<\/strong><\/p>\n During her speech at the Conservative Party conference, Theresa May declared austerity was \u201cover\u201d after eight years swinging public spending cuts aimed at reducing the deficit.<\/p>\n She assured the British public that the end \u201cis in sight\u201d and their \u201chard work had paid off\u201d.<\/p>\n Yet, Webb said Mrs Mays pronouncements should indicate extra cuts to benefits and the public sector wont be announced, as opposed to stopping or reversing the austerity measures already in effect.<\/p>\n Following last years budget, the government confirmed it will be freezing benefits until 2020, costing a typical working family around \u00a3300 per year.<\/p>\n Webb said: \u201cI think this business about putting an end to austerity, the issue is, the benefits freezes, the tax credit cuts, have been going on for years and has still got another year to run.<\/p>\n \u201cIf youre dependant on benefits or tax credits, youre going to feel another years squeeze.<\/p>\n \u201cThe cuts theyve already announced are still going to come through.\u201d <\/p>\n AUSTERITY: Webb believes the benefits freeze will continue (Pic: GETTY)<\/p>\n The effect of Brexit<\/strong><\/p>\n With the fate of Brexit hanging in the balance, Hammond said the government would have to scrap economic plans announced in Mondays budget in the event of a no-deal.<\/p>\n Hammond said he would have to tear up his plans and issue a new emergency budget if Britain leaves the EU next March without an agreement in place.<\/p>\n "We would need to look at a different strategy and frankly we'd need to have a new Budget that set out a different strategy for the future," he told Sky News's Sophy Ridge on Sunday programme.<\/p>\n Webb suggested Hammonds \u201ccautious\u201d approach is sensible given the Brexit negotiations are flux.<\/p>\n He said: \u201cWe dont know what deal well get if any.<\/p>\n \u201cWe dont know what the economy will look like after Brexit, so it would be very odd to make some big, bold and radical decision now and only have to change it in three or six months.<\/p>\n \u201cI think this is going to be a steady-as-she-goes budget. No fireworks, some giveaways \u2013 maybe some money for Universal Credit.\u201d<\/span><\/span><\/p>\n Related articles<\/p>\n <\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Hammond is facing the most challenging budget of his tenure as chancellor amid uncertainty over the ..<\/p>\n","protected":false},"author":1,"featured_media":96939,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-96938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\n![\"hammond](\"https:\/\/cdn.images.dailystar.co.uk\/img\/static\/preloaderbig.gif\")
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