EAST Hampshire MP Damian Hinds has welcomed announcements made in the spring Budget that “reinforce the Government’s commitment to make sure the UK economy remains strong” ahead of leaving the EU.

With the economy forecast to grow by two per cent in 2017 – up from 1.4 per cent forecast in November – and the deficit forecast to fall to 2.6 per cent of GDP in 2016-17, Mr Hinds said fiscal policies “continue to support the economic growth needed to improve public finances”.

“With our national debt equating to almost £62,000 for every household in the country, which is more than we spend on defence and policing combined, it’s critical that we continue to get public spending under control,” he said.

“But it’s also critical that we invest in Britain’s future and make it the best place in the world to do business. Corporation tax will fall to 17 per cent by 2020, and that sends a very powerful message to the rest of the world that we’re open for business.”

He went on to explain that the focus remains on improving productivity performance which, in turn, will help boost living standards across the country, adding that higher productivity means “an economy that offers better jobs, with better pay”.

Investment in cutting-edge technology, infrastructure and innovation will also be key. The budget included £270m to support research in artificial intelligence and robotic systems, battery technology and electric vehicles. And an allocation of £290m to support new PhD places, focused on STEM subjects.

Mr Hinds added: “Ensuring Britain can compete in the global economy is vital for our economic well-being at home. Having a strong economy is key to achieving rising living standards and supporting the public services we rely on every day.

“We have a strong base – real wages have grown for 27 straight months, unemployment is at an 11-year low, and the employment rate is at a new all-time high – but there is no room for complacency.”

An additional grant funding of £2bn for social care in England over the next three years was announced, alongside a further £100m for up to 100 new triage projects at A&E in English hospitals in time for next winter.

Last year, a million of the lowest paid had a pay rise with the National Living Wage, which will rise again to £7.50 in April – an income boost of more than £500 for a full-time worker this year.

The personal allowance will rise for the seventh year in a row, benefitting around 29 million people and meaning a typical basic rate taxpayer will pay a full £1,000 less income tax than in 2010.

The higher rate threshold will rise to £45,000, and savers will have access to the new NS&I bond announced at the Autumn Statement.

With the roll-out of the tax-free childcare policy and the doubling of free childcare for working parents with three or four year olds, a young family with a three year old and both parents working will receive free childcare worth “around £5,000 a year from September”.

However, Chancellor Philip Hammond’s announcements didn’t escape controversy, with plans to raise national insurance for self-employed people upsetting some.

Critics of the budget highlighted four instances in the 2015 Conservative manifesto that pledged not to raise national insurance rates.

Paula Joyce, tax manager for Alton-based accountants Sheen Stickland, has taken a close look at the way in which the budget will impact small businesses.

She said: “Small businesses were hot on the agenda for this budget with an emphasis on how the self-employed are taxed differently to those in employment.

“Historically, the self-employed have benefited from lower national insurance rates, however this reflected the reduced entitlement to state benefits and accrued pension on retirement. In addition, it represented the risk that small businesses face compared to the security that employment can provide.

“While the new state pension regime has increased the entitlement to pensions for self-employed workers, the increase in national insurance contributions will impact most small businesses immediately, and it may take many years before they see the advantages at retirement age.

“Those operating within owner-managed limited companies will also be affected by the reduction in the dividend allowance. Dividends have long been a tax-efficient way in which shareholder/directors can remunerate themselves. However, while dividends will continue to attract lower rates of income tax, careful forward planning will be essential to ensure that the impact of this change can be prepared for.”

Like others, according to Ms Joyce, over the coming months Sheen Stickland will be working closely with small business clients to advise on how best to manage the impact of these changes.