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Budget News
Chancellor George Osborne's Budget - Weds 23rd March 2011
The Chancellor has a new Budget day box - the famous 150-year-old red
Gladstone bag has been retired - from which he will reveal his Spring
2011 Budget speech.
This "budget for growth"makes private sector growth the priority.
George Osborne described his plan as "not a tax raising budget, but
nor can it be a give away."
His budget's aims are: to improve the tax system; to make Britain the
best place to start a business; to boost exports and to create an educated
work force.
The Budget
Tax
Aim:To support growth and make tax more simple to understand.
- Abolishes 43 complete tax reliefs to make tax system easier
- Direct tax to be indexed by CPI from April 2012
- Government to consult on merging NI Contributions and Income Tax
- The 50% tax rate remains, but only as a temporary measure.
- Income Tax relief on the Enterprise Investment Scheme will increase
from 20% to 30% in April 2011
- The "non-doms" charge is increased to £50,000 for
those resident in the country 12 years
- There will be more child tax credit for lower income families
- There will be a rise in the personal tax allowance - a further £630
to £8,015 in April 2012
- 1.1m lower paid people have now been taken out of income tax altogether.
- 10% discount on inheritance tax for people leaving 10% of estate
to charity.
Business
Aim:To make Britain the best place to start a business
- Corporation tax will be reduced by 2% from April this year and a further
1% for the next 3 years, reducing it to 23%. The bank levy will be
adjusted to ensure there is no net gain for banks.
- There will be 21 "enterprise zones" and local authorities
will be allowed to keep "business rate growth" in their
zones.
- The small business rate relief holiday is being extended by one
year to October 2012
- £350m of business regulation to be scrapped.
- No new regulation on companies who employ fewer than 10 staff for
3 years.
Homeowners
- £250m fund for first-time buyers under shared equity - FirstBuy
scheme. Buyers will be required to provide a 5 per cent deposit and
the government and the house builder will add a further 20 per cent
with a low-interest equity loan.
- The Mortgage Interest scheme will be extended to January 2013, helping
to reduce mortgage arrears.
Research and Development
- Small companies research and development tax credit will be raised
to 200% this year and 225% next year.
- Funding £100m for new science facilities
- £200m extra will be invested in regional railways - including
schemes in Manchester, and Swindon to Kemble.
Education
- Doubling the number of new technical colleges to 24, and increasing
the number of apprenticeships by 250,000 over the next ten years.
- There will be 100,000 places in a new work experience scheme over
the next few years.
Employment
- There will be a "pay lift" for public servants on less
than £21,000.
Councils
- All local authorities in Britain have agreed to freeze council
tax this year
- £100m extra funding for councils to fill potholes
Pensioners
- Introduction of an automatic system for raising the pension age
in line with longevity forecasts
- Personal contributions to public sector pensions will go up by 3pc.
- New flat rate State Pension expected to be worth £140 a week,
based on National Insurance Contributions, will take years to implement."
Fuel
- Planned fuel duty increase of 1% above inflation to be scrapped
until 2015 and a "Fair Fuel Stabiliser" - funded by increasing
the supplementary charge on North Sea oil and gas production from
20% to 32% - will be introduced from Thursday, and will raise an extra
£2bn. The money will be used to delay the duty rise until next
year.
- Fuel duty cut from 1p per litre from1800 GMT
- Planned 4p per litre rise in April delayed until 2012
Tobacco
- Tobacco duty rates up 2% above inflation
Green
- £2bn extra funding for Green Investment Bank - to launch in
2012
  
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