Budget: At a Glance
CHANCELLOR Alastair Darling rose to deliver his first Budget to the House of Commons at 12.31pm.
In a speech which lasted 50 minutes he outlined a budget which placed major emphasis on keeping the UK economy stable.
Mr Darling said the government would do everything in its power to maintain stability and keep inflation low.
Key points included:
• He said turbulence in global financial markets, starting in the US, had spread across the world – and this poses a major risk to the world economy. Mr Darling said Britain was more resilient and more prepared to deal with global shocks.
• Growth and low inflation will be maintained, as the economy has expanded for a record 10 years.
• He said the core purpose of the Budget was for now and in the future. He said the British economy will continue to grow before adding that Britain was more resilient and more prepared to deal with global shocks.
• The UK's GDP per head has gone from the lowest in the G7 in the 1990s to second highest now.
• The British economy grew by 3% last year, but will this year grow from 1.75-2.25%.
• To provide certainty, the chancellor said he is writing to the governor of the Bank of England to keep a 2% target on inflation.
• For environmental reasons, fuel duty will rise by 0.5p per litre in real terms in 2010. He said he was postponing the 2p increase in fuel duty until October this year.
• Borrowing next year will rise to £43bn, some 2.9% of national income, Mr Darling said. It will fall to 1.3% by 2012/13.
• He said that by 2011, investment will have increased by 500%, trebling as a share of national income.
• Public spending in the coming three years will grow by 2.2% a year.
• An extra £2bn will be spent on troops in the frontline, including £900m on military equipment.
• From April 2010, all long term recipients of incapacity benefit will attend work capacity programmes.
• Spending in government departments must be matched by reform.
• The focus for the next decade on the NHS will be creating “world class services”.
• Child poverty must be eradicated in Britain.
• From October 2009, rules for housing and council tax benefit will mean families on benefit are better off in work. From April, 2009, child benefit will be increased to £20 a week.
• The government will launch the “savings gateway” nationally with the first accounts available by 2010.
• Cash ISA limit confirmed as £3,600 a year from April,.
• Corporation tax will fall from 30% to 28% by April this year, he said.
• Capital fund of £12.5m to encourage more women entrepreneurs.
• Mr Darling said the government welcomed the contribution made by people from outside the UK. But non domiciled families should after seven years pay a “reasonable charge”.
• There will be £60m over three years for equipping people for the workplace.
• New measures at Heathrow and other airports, using biometric technology, to speed up the time it takes to get through security checks.
• From this April, key workers such as teachers and nurses, will be able to borrow money from shared equity schemes. Stamp duty on shared ownership homes will not be required until people own 80% of their home.
• More people should have the chance to have a long term fixed mortgage, the chancellor said.
• He said consideration was being given to raising targets for emissions cuts to 80% by 2050.
• Laws will be introduced by 2009 to charge for using plastic bags unless supermarkets do it themselves.
• £26m to help make homes greener, with new non-domestic buildings to become zero-carbon from 2019.
• £26m to help make homes greener.
• From 2009, major reform of the vehicle excise duty. For new cars from 2010, the lowest polluting cars will pay no road tax in the first year. Higher polluting cars will pay more.
– Cigarettes up 11p a packet with beer to rise 4p a pint4p a oint, spirits 55p a bottle and cider 3p a litre. Wine will also rise in price by 14p a bottle.
• Winter fuel allowance will go up from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.
