2015 Summer Budget: At a glance

CHANCELLOR George Osborne’s summer Budget was the first delivered by a Conservative-only Government since 1996. Here are the key measures he announced: CORPORATE and ECONOMY

British economy grew 3% last year, up from figures in March that said it was 2.6%, with business investment now 31.9% higher than it was in 2010

The deficit was 10.2% of national income in 2010 and this year is forecast to fall to 3.7% – one third of the deficit the Conservatives inherited.

Britain’s borrowing forecasts have been revised down to to £69.5 billion, less than half of 2010.

New National Living Wage set it to reach £9 an hour by 2020 start next April, at the rate of £7.20

Government will remove the Climate Change Levy exemption for renewable electricity

From 2016 our new Employment Allowance, will now be increased by 50% to £3,000.

HMRC will receive £750m of investment to go after tax fraudsters, offshore trusts and hopefully raising £7.2 billion in extra tax, naming and shame serial users of failed tax avoidance schemes

Companies with profit over £20 a year, will see corporation tax payment dates brought forward, so tax is paid closer to the point at which profits are earned.

Bank levy rates will be reduced over the next six years

Annual Investment Allowance for business will be set at £200,000

TAX, BENEFITS and SOCIAL

Britain’s corporation tax rate will fall to 19% in 2017 and 18% by 2020.

Inheritance tax – Phasing in a new £175,000 allowance for the home when it is left to children or grandchildren, on top of the existing £325,000 threshold which will be fixed until the end of 2020-21. Both allowances can be transferred to a spouse or partner.

People will be able to pass up to £1 million on to your children free of inheritance tax.

Plans to reduce the benefits cap from £26,000 to £23,000 in London, and £20,000 in the rest of the country.

According to the Chancellor, child poverty and inequality are down, as well as a record number of women in work, and the gender pay gap at “an all-time low.”

Non-domicile measures, including those with non-domicile parents who were born and live in the UK will be made to pay British taxes. Permanent non-dom status will be abolished.

Pensions tax relief in people’s Annual Allowance given to the highest earners will be tapered away to a minimum of £10,000.

Dividend tax credit will be replaced with a new tax-free allowance of £5,000 of dividend income for all taxpayers.

Government will freeze working age benefits for four years, including Tax Credits and Local Housing Allowance but excluding Maternity pay and disability benefits.

Rents paid in the social housing sector will not be frozen, but reduced by 1% a year for the next four years.

The income threshold in tax credits will be reduced, from £6,420 to £3,850.

Limit the support provided through tax credits and Universal Credit to two children.

INFRASTRUCTURE

Chancellor reiterated plans from previous Budget allocating £15bn for new roads for the rest of this decade.

Continuing development of Crossrail 2 and the “exciting” development of the Olympic village in London as well as M4 and the Great Western Line in Wales.

£7.2 billion investment in transport in the South West is underway.

Brand new cars will have VED bands, zero emission, standard and premium

Increase in the defence budget every year, and on top of that, create a joint security fund of £1.5 billion a year by the end of the parliament.

Plans in place to meet the NATO pledge to spend 2% of our national income on defence.

DEVOLUTION

Agreement with 10 councils of Greater Manchester to devolve fire service, establishing a land commission in the city, and further collaboration on children’s services and employment programmes, in exchange for a major.

“Working towards” deals with the Sheffield and Liverpool City Regions and Leeds, West Yorkshire

EDUCATION

Student grants set to double to £3bn in the next decade, so from the 2016/17 academic year, maintenance grants will be replaced with loans for new students, to be paid back when they are earning over £21,000 a year

Government is committing to 3m more apprenticeships, after already ‘creating’ 2m

People aged 18-21 will be under a new Youth Obligation that says they must either “earn or learn” and automatic entitlement to housing benefit for 18-21 year olds is being abolished

Government has committed £500m to expand the number of cadet units in state schools to 500, prioritising schools in less affluent areas.

From September 2017 all working parents of 3 and 4 year olds will receive free childcare of up to 30 hours a week.

 

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