Budget at a Glance
Economy
Borrowing falls and growth increases. Government borrowing £1bn lower than expected, this year at £126bn and £120bn the year after, and £21bn by 2016/17, the structural deficit eliminated.
Office for Budget Responsibility revises UK growth forecast for 2012 to 0.8% – from 0.7%.
Income tax
From April 2013, the 50p top rate of tax cut to 45p.
Personal income tax allowance raised to £9,205 from April 2013, as Chancellor aims for £10,000 target. 24 million people will be £220 better off.
Integration of tax and National Insurance regimes to move ahead with detailed consultation published in April.
New general anti-tax avoidance rule to be introduced.
Cap of 25% on personal tax reliefs for anyone earning more than £50,000
Age-related allowances for pensioners to be simplified, creating a single personal allowance for all but ensuring no pensioner loses in cash terms.
Business
Corporation tax cut further to 24% from next month. By 2014 it will fall to 22%.
Simplified tax system for small firms with a turnover below £77,000.
Government support for £150m of tax increment financing to help councils promote development and an extra £270m for the Growing Places fund.
Tax relief for video games, animation and high-end television production sectors.
Government considering enterprise loans for young people to start their own business.
Finance partnership and enterprise finance guarantee schemes extended.
Infrastructure
Chancellor indicates support for airport capacity increases in the South East
Extend electrification of the Transpennine route between Manchester and Sheffield. Further improvements to the lines between Manchester and Preston, and Manchester and Blackpool.
Funding for superfast broadband and wi-fi in the UK’s 10 largest cities.
Planning
Overhaul of planning regulations to be unveiled next week based on presumption of consent to sustainable development
Other
Sunday trading: laws relaxed for eight Sundays in the summer.
Child benefit scaled back for those earning over $50,000, removed for incomes in excess of £60,000
Public sector
Public sector pay to be more responsive to local pay rates. Independent Pay Review bodies to review regional public sector pay.
Property
Stamp duty loopholes to be filled. ‘Manion tax@ 15% on houses worth more than £2m bought through corporate envelopes.
Stamp duty on all home worth more than £2m increased to 7% from midnight.
