Budget 2015: At a glance
“Austerity to Prosperity”: Budget 2015
Economy
Office for Budget Responsibility confirms that at 2.6%, Britain grew faster than any other major advanced economy in the world last year.
Osborne said that by 2018-19, Britain will have a budget surplus of 0.2%, or £5.2 bn, followed by a forecast surplus of 0.3% in 2019-20.
Debt will be falling as a share of GDP from 2015-16, a year earlier than forecast
By 2014-15, the deficit is forecast to have fallen by half, from 10.2% at its peak in 2009-10, to 5% in 2014-15.
Borrowing at £90.2 bn, lower than at the Autumn Statement
Inflation was 0.3% in January 2015, down from 0.5% in December 2014.
Business
Sale of £13bn of mortgage assets the government still holds from the bailouts of Bradford & Bingley and Northern Rock will be used to pay down the national debt
Levy on banks increased to raise additional £900m, PPI compensation outlawed as an off-settable expense
Osborne said that 1,000 new jobs are created every day under this government, with 1.9m jobs over the term of which 80% were full time jobs, and 80% skilled.
Oil industry measures amount to £1.3bn of support for the North Sea intended to boost oil production there by 15% by the end of the decade.
For the online sharing economy and creative industries, the government will be making TV and film tax credits more generous
Expanding broadband voucher schemes to more cities 100MB per second to all homes in the country
Corporation tax cut to 20%
Farmers will be able to average their incomes for tax purposes over five years
Infrastructure
West Yorkshire Combined Authority deal part of Northern Powerhouse
Devolution over skills and transport. Greater Manchester and Cheshire East in deal to keep 100% business rate
The West Midlands’ Energy Research Accelerator to receive £60m
8 new Enterprise Zones announced, including Blackpool
£7bn transport investment in South West – rail franchise in the South West
Property
Help to Buy ISA introduced – every £200 saved the government will top up £50, effectively a tax cut for first time buyers, up to a maximum of £3,000.
Public sector
Administrative costs down 20% and welfare savings of £21bn
£1.2bn for mental health services for children and new mums
Personal finance
Threshold at which people pay the higher tax rate is rising above inflation, and will rise from £42,385 this year to £43,300 by 2017-18.
New measures against tax avoidance and evasion expected to raise £3.1bn over the forecast period
Top 1% pay a greater rate of tax, at 27% up from 25% in 2010.
Personal tax-free allowance will rise to £10,800 next year – and then to £11,000 the year after affecting 27 million people.
As of April next year the first £1,000 of the interest people earn on savings will be completely tax-free.
Proposals were put forward to give five million pensioners access to their annuity.
From next year, the Lifetime Allowance will be reduced from £1.25m to £1m. This will save around £600m a year, the chancellor said, although fewer than 4% of pension savers currently approaching retirement will be affected.
As has been reported, national minimum wage should rise to £6.70 on course for minimum wage over £8.00 by end of the decade.
Taking another penny off the pint for the 3rd year in a row, spirits and ciders cut by 2% and wine duty will be frozen.
