Budget 2016: At a glance
Coverage of the Budget is brought to readers of TheBusinessDesk.com in partnership with Deloitte.
THE main points from George Osborne’s Budget were:
State of 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
One million jobs expected to be created by 2020
Inflation forecast: 0.7% for 2016
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
Read more: Small businesses to benefit from big jump in rate relief threshold…
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
Plans to develop the case for a tunnel between Manchester and Sheffield.
£13m boost for Hull to help the city as UK City of Culture 2017
£700m for flood defence schemes
Read more: HS3 green light is highlight of infrastructure investment…
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
Read more: Lifetime ISAs and income tax thresholds among personal finance changes…
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
