Now that the dust has settled – Budget 2010 key points
UK Budget 2010 key points
Here are the key points of Chancellor Alistair Darling’s 2010 Budget, the last one before the general election.
UK Budget 2010
FUEL, CIGARETTES AND ALCOHOL DUTIES
- 3p fuel duty rise to be phased in<http://news.bbc.co.uk/1/hi/business/8585352.stm> in three stages between April and January 2011 rather than in one go next month
- Cider duty to rise by 10% above inflation <http://www.bbc.co.uk/blogs/daveharvey/2010/03/chancellors_cider_tax_leaves_w.html> from midnight on Sunday Wine, beer and spirit duties to rise by 2% from midnight on Sunday and further 2% rise planned for two years from 2013.
- Tobacco duty up 1% from midnight on Sunday and by 2% in real terms each year until 2014
HOUSING
- Stamp Duty scrapped for homes <http://news.bbc.co.uk/1/hi/business/8585423.stm> selling for up to £250,000 for first-time buyers, but only for two years.
- Stamp duty on residential property sales over £1m to increase to 5% from April 2011.
- The most expensive properties in each area will be excluded from Housing Benefit calculations.
UK ECONOMY
- Economy contracted 6% during the recession<http://news.bbc.co.uk/1/hi/avconsole/latest_news/857354.stm>.
- Predicted growth of 1% to 1.25% in 2010, in line with forecasts.
- 2011 growth forecast lowered from 3.5% to 3-3.5%.
BORROWING
- Borrowing this year forecast to be £167bn<http://news.bbc.co.uk/1/hi/business/8584978.stm> – £11bn lower than predicted in December.
- Borrowing to fall from £163bn in 2010-11 to £74bn by 2014-15.
- Public sector net debt to reach 54% of gross domestic product this year,increasing to 75% in 2014/15.
HELP FOR BUSINESS
- £2.5bn package for small business to boost skills and innovation<http://news.bbc.co.uk/1/hi/business/8585144.stm>
- One year business rate cut from October to help 500,000 companies.
- Investment allowance for small firms doubled to £100,000.
- Doubling relief on capital gains tax for entrepreneurs but no change to capital gains tax rates.
- £385m to maintain road network.
- Canals body British Waterways to become charitable trust not sold off
BANK LENDING
- One-off bank bonus tax has raised £2bn, double the amount forecast.
- Basic bank account guarantee for a million extra people.
- RBS and Lloyds Bank Group to provide £94bn in small business loans.
- Backs tax on bank transactions but on global basis.
- New service to adjudicate credit disputes
JOBS AND TRAINING
- Six month work or training guarantee for under 24s extended to 2012.
- Amount of time over-65s must work to receive work credits reduced.
OTHER TAXES AND ALLOWANCES
- Tax allowances for those on over £100,000 gradually removed. No changes to allowances for everyone else.
- Annual limits on Individual Savings Accounts (ISAs) will rise from £7,200 to £10,200 next month.
- No changes to VAT or income tax planned.
- Inheritance tax threshold frozen for four years.
- Clampdown on tax avoidance to raise £500m
- New tax agreements with Belize, Grenada and Dominica
GOVERNMENT SAVINGS
- On track to achieve £11bn efficiency savings target by 2012-3.
- Reform of housing benefit to save £250m.
- 15,000 civil servants to be relocated outside London.
- As part of £343m cuts to the Ministry of Justice budget, the Courts Service and the Tribunals Service will be merged and 20 magistrates courts closed.
ENVIRONMENT
- £2bn investment bank to back low-carbon industries such as offshore wind.
- Government to provide £1bn through asset sales
EDUCATION
- Funding for 20,000 new university places in science and maths but institutions must make savings elsewhere.
- £35m enterprise fund to help university-launched businesses.
PENSIONS AND BENEFITS
- Winter fuel allowance rates extended for further year.
- £4 rise in child tax credit for parents with young children from 2012.