21.3.2011 - The UK Budget 2011 (Summary, Highlights and Key Points)
Posted by Ben Williams on Wed, Mar 23, 2011 @ 03:41 AM
So, the long-awaited Budget 2011 as been delivered. Here you will find all the key points that George Osbourne mentioned.
Click here to see a more in-depth article about the main points of the Budget 2011.
Or, to learn more about the Budget in great detail, and read the full UK Budget 2011, click here.
· Today's budget "is about the reforming the economy so we can have enduring growth for the future".
· "This is not a tax-raising budget. This is a budget based on sound money."
Fuel, Cigarette and Alcohol Duties
· 1p removed from fuel duty, as of 6pm tonight
· Planned inflation rise in fuel duty delayed until 2012
· Annual 1p above inflation 'fuel escalator' rise scrapped until 2015
· Fair fuel stabiliser introduced - 20% tax on profits of oil companies to increase to 32%, expected to raise £2bn extra. This will fund the fuel measures.
· VAT on fuel will not be reduced
· No further changes to alcohol duties, but 2% above inflation rise in excise duties for wine, spirits and beer to go ahead.
· Tobacco duty rates up by 2% above inflation
· No personal tax increases
· Personal tax allowance to rise by £630 to £8,105 in April 2012 - a real increase of £48 a year, or £126 in cash terms.
· Consultation on merging of national insurance contributions and income tax.
· Reviews launched of the revenue raised by the 50p tax rate and the taxation of very high-value property.
· Direct tax rates to be indexed to Consumer Price Index from 2012.
UK Economy
· Annual forecast for 2011 revised down to 1.7%, from 2.1%, due to weaker final quarter growth in 2010.
· 2012 growth forecast also revised down, from 2.6% to 2.5%.
· Inflation set to stay between 4% and 5% in 2011, will drop to 2.5% next year.
Borrowing
· Borrowing for this year to be £146bn - below the government target. Borrowing will fall to £122bn next year, then £101bn in 2012-13, £70bn in 2013-14, £46bn in 2014-15 and £29bn in 2015-16.
· National debt forecast to be 60% of national income this year, rising to 71% in 2012 before falling to 69% by 2015.
Other Taxes and Allowances
· 43 tax reliefs abolished to simplify the system.
· Measures to close tax loopholes will raise £1bn a year.
· From April 2012, people leaving 10% or more of their estate to charity will enjoy 10% reduction in inheritance tax, benefiting charities by £300m.
· Plans to switch air passenger duty (APD) from passengers to planes have been dropped. This year's APD rise is postponed for a year, and the government will seek to impose the tax on private jets.
· Charge on non-domiciled taxpayers to increase from £30,000 for those here for seven years to £50,000 for those in the country for 12 years, raising more than £200m.
Housing
· £250m to help first-time buyers purchase newly-built homes.
· Support for mortgage interest scheme extended for a year.
Help for Business
· Small business rate relief holiday extended by one year to October 2012 at a cost of £370m.
· Corporation tax to be reduced by 2% from April, to fall eventually to 23% - the lowest corporation tax among the G7 industrialised countries. Bank levy rate to be adjusted next year to offset the effect of corporation tax reduction on banks.
· Small companies' research and development tax credit to rise to 200% in April and 225% in 2012.
· Entrepreneurs relief scheme to be doubled to £10m from 6 April.
· 21 new enterprise zones to be funded, including in Manchester, Birmingham and London. Ten others to be named in the summer.
· Help for manufacturing to include new export credits, a technology and innovation centre and nine new university centres.
· Gift aid benefits up from £500 to £2,500 as the system is simplified.
· Income tax relief on enterprise investment scheme to increase from 20% to 30%.
Jobs and Skills
· Funding for 40,000 new apprenticeships for young unemployed.
· Number of places on a new work experience scheme to increase to 100,000 over two years, rather than 20,000 as previously announced.
· Investment of £100m in new science facilities in Cambridge, Norwich, Harwell and Daresbury, funded from bank levy.
· New funding to double the number of university technical colleges from 12 to at least 24.
Pensions
· New single tier pension, worth £140 a week, would not apply to current pensioners.
· Government to seek automatic mechanism for future increases in state pension age, based on regular reviews of longevity.
Transport
· Investment of £200m in regional railways.
· £100m to help councils repair potholes.
Green Measures
· The UK to become the first country in the world to introduce a carbon price floor for the power sector.
· £2bn more for green investment bank to start operating in 2012, one year earlier than planned.
· Climate change levy discount on electricity for those signing up to climate change agreements will rise from 65% to 80% from April 2013.
Other Announcements