Budget at a Glance
Coverage of the Budget is brought to readers of TheBusinessDesk.com in partnership with Ernst & Young.
THE main points from George Osborne’s Budget were:
Economy
Office for Budget Responsibility revises UK growth forecast to 0.6% in 2013, a downgrade from 1.2% announced in December
Growth is predicted to be 1.8% in 2014; 2.3% in 2015; 2.7% in 2016 and 2.8% in 2017
Borrowing of £114bn in 2012/13, set to fall to £108bn next year, £97bn in 2014/15, £87bn in 2015/16, £61bn in 2016/17 and finally £42bn in 2017/18
Borrowing as share of GDP to fall from 7.4% in 2013/14 to 5% in 2015/16
Deficit has been cut by a third since May 2010
Debt as a share of GDP is to increase from 75.9% in 2012/13 to 85.1% in 2015/16
Inflation target of 2% to stay in place with a Bank of England remit to focus on growth as well as inflation
Business
Corporation tax to be cut by 1% to 20% in 2015
New employment allowance to cut national insurance bills cut by £2,000 for every business
Tax relief for investment in social enterprises
Stamp duty cut on shares traded on markets like AIM
Income tax & duties
Limit at which people start paying tax to be raised to £10,000 a year earlier than planned in 2014
Tax avoidance and evasion measures, including agreements with Isle of Man, Guernsey and Jersey, aimed at recouping £3bn in unpaid taxes
September’s fuel duty rise scrapped
Annual above-inflation rise in beer duty to be scrapped. Beer duty to be cut by 1% later this month
All other alcohol duties to rise by 2% above inflation
Infrastructure
£3bn extra for new projects every year from 2015-16 until 2020, total of £15bn
Property
Shared equity schemes extended, with interest-free loans up to 20% of value of new-build properties
Bank guarantees to underpin £130bn of new mortgage lending for three years from 2014
Public sector
Most government departments to see budgets cut by 1% in each of next two years
Schools and NHS will be protected
£11.5bn in further cuts earmarked in 2015-16 Spending Review
1% cap on public sector pay extended to 2015-16 and limits on “progression” pay rises in the sector
Military to be exempt from “progression” pay limits
Other
20% tax relief on childcare vouchers up to £6,000 per child from 2015
Proceeds of Libor banking fines to be given to combat stress charities
