Budget 2016: Infrastructure priorities outlined
Chancellor George Osborne delivered on the pre-Budget hype over the Government’s £300m commitment to HS3 linking Manchester and Leeds by rail and commitment to add a fourth lane to the overcrowded trans-Pennine M62.
Included in the pledge were upgrades to the A66 and A69 roads to further improve connections for Carlisle and the far North of England, as recommended ahead of the Budget by the National Infrastructure Commission.
And there was encouraging new for the areas of the North hit by floods in December.
A 0.5% insurance premium tax hike to 10% with the proceeds diverted towards a £700m flood defences fund was also announced.
The tax had already increased last year from 6% to 9.5%, but premiums have been falling after a crackdown on so-called “ambulance chasers” and personal injury claims.
Flood defence schemes will be targeted at York, Leeds, Calder Valley, Carlisle and Cumbria.
“For half of all British business, rates will fall or be abolished altogether,” said Osborne. “This is a £7bn tax cut for shopkeepers. We are open for business and this a Government which is on your (the businesses’) side.”
Businesses would also benefit from changes to stamp duty with Osborne implementing recommendations from the IMF over simplifying the system.
He said the commercial stamp duty will have a 0 rate band on property purchases up to £150,000, 2% on the next £100,00 and 5% rate above £200,000.
