Economy
- During the recession the UK economy contracted by 6%.
- In line with forecasts, the UK’s predicted economic growth for 2010 is between 1% – 1.25%.
- For 2011 the growth forecast has been lowered from 3.5% to 3-3.5%.
Borrowing
- Borrowing for this year is to be £167bn – £11bn less than predicted in December last year.
- In 2010-11 borrowing is to fall from £163bn to £74bn by 2014-15
- Public sector net debt is to reach 54% of gross domestic product (GDP) this year and will increase to 75% in 2014-15
Bank Lending
- Bonus tax raised £2bn – doubled the amount forecast.
- RBS and Lloyds bank group to make loans of £94bn available for small businesses.
- New services to adjudicate credit disputes.
Fuel, Cigarettes and Alcohol Duties
- 3p fuel duty rise to be phased in between April this year and January 2011.
- Duty on cider to rise by 10% from midnight on Sunday.
- Duty on wine, beer and spirit will rise by 2% from midnight on Sunday. From 2013 a further 2% rise is planned for two years.
- Duty on tobacco up 1% from midnight on Sunday and by 2% in real terms each year until 2014.
Businesses
- UK small businesses will benefit from a £2.5bn package to boost skills and innovation.
- To help 500,000 businesses there will be a one-year business rate cut from October.
- Investment allowance to be doubled to £100,000 for small businesses
- Doubling relief on capital gains tax for entrepreneurs.
- No change for capital gains tax rates.
- Maintenance of road network will receive £385m.
Other Taxes and Allowances
- New tax agreements with Belize, Grenada and Dominica.
- No changes to VAT planned.
- Inheritance tax threshold to be frozen for 4 years.
- To raise £500m there will be a clampdown on tax avoidance.
- Limits on individual savings accounts to rise in line with inflation.
- Tax allowance for those on over £100,000 gradually removed. No changes for everyone else.
Jobs and Training
- Under 24’s to benefit from a 2 year extension taking the scheme to 2012 for guaranteed 6 month work or training placement.
- The amount of time over-65’s must work to receive work credits is to be reduced.
Housing
- For 1st time buyers stamp duty is to be scrapped for homes under £250,000.
- A 5% increase in stamp duty for residential property sales over £1m.
Government Saving
- On track to achieve efficiency saving of £11bn.
- £250m to be saved from a reform of housing benefit.
- A relocation of 15,000 civil servants outside of London.
Environment
- Low-carbon industries such as offshore wind will be backed by £2bn investment bank. Government will raise £1bn through asset sales.
Education
- Science and Maths will receive funding for 20,000 new university places.
- University-launched businesses will benefit from a £35m enterprise fund.
Pensions and Benefits
- Allowance rates for winter fuel to be extended for further year
- From 2012 for parents with young children there will be a £4 rise in child tax credit
For more information visit www.direct.gov.uk
