Budget at a glance

CHANCELLOR George Osborne repeatedly said his Budget was one for “the next generation” as he delivered his speech to a packed House of Commons. Here are the key points:

State of the Economy

UK “set to grow faster than any other major economy in the world”.

Government on course to deliver Budget surplus, Osborne claims.
UK economy “strong, growing and resilient”.

Growth of 2% forecast for 2016, revised down from 2.4% in November’s Autumn Statement.

Forecast growth of 2.2% in 2017 and 2.1% in 2018, 2019 and 2020.

Inflation forecast: 0.7% for 2016.

One million jobs expected to be created by 2020.

Public Spending

“Security of families and businesses depends on Britain living within its means.”

Government spending to fall to 36.9% of GDP by 2020.

By 2020, further spending cuts of £3.5bn.

Forecast debt as a share of GDP revised up:
82.6% – 2016-17
81.3% – 2017/18
79.9% – 2018/19
77.2% – 2019/20

Borrowing forecasts:
£72.2bn – 2015/16
£55.5bn – 2016/17
£38.8bn – 2017/18
£21.4bn – 2018/19
£10.4bn surplus in 2019/20; £11bn surplus in 2020/21.

Business

£12bn to be raised tackling tax avoidance.

Corporation tax to be lowered to 17% by April 2020.

Small business tax relief threshold to be raised from £6,000 to maximum of £15,000.

Commercial stamp duty rates to be reduced for lower bands.

Infrastucture

Stronger links across the north.

Green light for HS3 rail link between Manchester and Leeds.

£230m for road improvements in the North, including upgrades to M62.

£13m boost for Hull to help the city as UK City of Culture 2017.

£700m for flood defence schemes.

Pension reforms

From April 2017, ISA limit to increase to £20,000.

Introduction of ‘Lifetime ISA’ for under-40s – government to contribute £1 for every £4 saved.

Personal tax

Capital Gains Tax to be cut to 20% and from 18% to 10% for basic rate taxpayers.

Higher tax threshold will rise to £45,000 by 2017.

Tax-free personal allowance to increase to £11,500.　

Excise duties

Fuel duty frozen for sixth year in a row.

Beer and cider duty also frozen.

Excise duties on tobacco to rise by 2% above inflation.