Budget 2011 House of Commons Live

“A budget for making things not for making things up” – Chancellor George Osborne

“We gambled on a debt fuelled level of growth”

Forecasts

• 2012 growth forecast down 2.6% to 2.5%
• Inflation to remain between 4-5% this year
• Borrowing to fall this year from 146bn to £29bn in 2015/16
• Britain has fallen from 4^th to 12^th in World Competitiveness League

“Doing what we can to help families with the cost of living”

Taxation

• 43 complex tax reliefs abolished

• Taxable income threshold to increase by £1000 to £7, 475 from April 6^th – an estimated 500, 000 people will not pay income tax (Institute of Fiscal Studies).  This will increase to over £8000 in 2012
• Government will launch consultation to merge income tax and NI – “historic step”
• Corporation tax to fall by 2% – lowest corporation tax in G7 “Britain is open for business”
• Main rate of NI employee contribution rates to increase from 11% to 12%
• Inheritance Tax to reduce 10% if benefactor gifts 10% of estate to charity
• “Tackling Tax Avoidance” paper published today – to raise £1bn this year
• Council tax frozen
• Child tax credit to raise £250 per year
• Non domiciles charge to increase to £50, 000 for non doms been in country over 12 years but there will be no further changes in next 5 years
• Introduction of a pay lift for public sector servants earning less than £21, 000

“Fiscally neutral budget”

Excise Duty

• Air Passenger Duty – rise to be delayed until next year
• Tobacco duty up 2%
• Fuel Duty – delay inflation rise by a year, reduce petrol prices by 1p per litre as of 6pm tonight

“Britain best place to start, grow and finance a business”

Business Regulation

• Minimum £100 fine to be enforced for late tax returns
• £350m of specific regulations will go
• No win no fees legal regulation to be stricter to help employers
• Planning permission – from today all bodies to prioritise jobs and growth – default answer to planning applications should be yes
• Time limits on planning applications to be introduced
• SMEs – from April start up capital income relief to increase from 18% to 20%
• Entrepreneur relief to double

“We’re all in this together”

Housing

• 5% stamp duty rate on residential property worth more than £1 million
• Introduction of First Buy Scheme to help estimated 10, 000 families get onto the housing ladder – funded by £250m bank levy

“Britain has lost ground in the world’s economy and needs to catch up”

Manufacturing

• 14, 000 more jobs in manufacturing have already created by the coalition-government
• Nine more university centres of manufacturing innovation will be built across the UK
• £100 million to be put towards university science innovation centres
• Small companies conducting research tax credit to rise 200% – from PAril
• Enterprise Zones – 21 new Zones, 100% discount on rates, zones on where there is a strong focus on manufacturing.  New Zones to be announced tomorrow

“Stability, credibility, lower interest rates”

Education

• The government are set up fund 24 new technical colleges
• Work Experience Scheme – 100, 000 places over the next 2 years
• Expansion of apprenticeships – 250, 000 more over next 4 years

“Listen and respond”

Pensions

• Automatic increases to state pension age by cross party review
• Single Tier Pension, this will take years to come into effect but will be a flat rate, worth £140 per week

“Big help for the Big Society”

Transport

• £100 millions to help councils repair pot holes on roads

Website:  Parliament UK (TV)

Source:

http://www.parliamentlive.tv/Main/Player.aspx?meetingId=7925

Published on 23^rd March 2011

Kuki Taylor

Research and Communications Officer