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| Version 0 |
Version 1 |
| At-a-glance: Pre-Budget key points |
At-a-glance: Pre-Budget key points |
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(41 minutes later)
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| A summary of the key announcements in Alistair Darling's pre-Budget report. | A summary of the key announcements in Alistair Darling's pre-Budget report. |
forecast to shrink 4.75% in 2009, worse than 3.5% forecast in April Growth of 1%-1.5% expected in 2010 and 3.5% in 2011 and 2012 Forecast borrowing of £178bn in 2009, £3bn higher than predicted in April Estimated borrowing of £176bn in 2010 and £140bn in 2011, falling to £96bn in 2013 Budget deficit to be halved by 2013 Estimated public cost of bank bailouts cut from £50bn to £10bn Total spending in 2010-11 to rise by £31bn. Current spending to fall by 0.8% between 2011-2 and 2014-5 One-off 50% tax on bank bonuses of more than £25,000 Inheritance tax to be frozen at £325,000 until 2011 VAT to return to 17.5% from 15% from 1 January 2010. No other changes to VAT All national insurance rates to rise by 0.5% from April 2011 Increase in corporation tax for small businesses to be deferred Stamp duty holiday on certain properties to end on 1 January 2010 Under-24s to be guaranteed work or training after six months out of work Basic state pension will rise by 2.5% in April 2010 Child and disability benefit to rise by 1.5% in 2010 Contributions to public sector pensions to be cut by £1bn a year All public sector pay settlements to be capped at 1% for two years from 2011 Bingo duty to be cut from 22% to 20% £160m investment in low-carbon and renewable projects £200m extra investment for Warm Front insulation scheme, helping 65,000 households Boiler scrappage scheme for 125,000 households Electric cars to be exempt from company car tax for five years New 50p tax on landline phones to pay for superfast broadband New 10% tax on income from patents to boost science development Free school meals to an extra 500,000 low income families | TAX national insurance rates to rise by a further 0.5% from April 2011, raising £3bn a year VAT to return to 17.5% from 15% from 1 January 2010. No other changes to VAT One-off 50% tax on bank bonuses of more than £25,000 Stamp duty holiday on certain properties to end on 1 January 2010 Bingo duty to be cut from 22% to 20% |
| ECONOMIC FORECASTS - Economy forecast to shrink 4.75% in 2009, worse than 3.5% forecast in April
- Growth of 1%-1.5% expected in 2010 and 3.5% in 2011 and 2012
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| BORROWING |
| • 2009 forecast raised by £3bn to £178bn |
| - Estimated borrowing of £176bn in 2010 and £140bn in 2011, falling to £96bn in 2013
- Budget deficit to be halved by 2013
- Estimated public loss from bank bailouts reduced from £50bn to £10bn
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| SPENDING |
| - Total spending in 2010-11 to rise by £31bn.
- No spending review for period after that
- Current spending estimated to fall by 0.8% between 2011-2 and 2014-5
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| PAY, PENSIONS AND BENEFITS - Basic state pension will rise by 2.5% in April 2010
- Child and disability benefit to rise by 1.5% in 2010
- Contributions to public sector pensions to be cut by £1bn a year
- All public sector pay settlements to be capped at 1% for two years from 2011
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| ENVIRONMENT - £160m investment in low-carbon and renewable projects
- £200m extra investment for Warm Front insulation scheme, helping 65,000 households
- Boiler scrappage scheme for 125,000 households
- Electric cars to be exempt from company car tax for five years
- Tax rebate for installation of wind turbines and solar panels
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| EMPLOYMENT - Under-24s to be guaranteed work or training after six months out of work
- Training or education guarantee for 16 and 17-year-old to be extended to 2010
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| BUSINESS - New 50p tax on landline phones to pay for superfast broadband
- New 10% tax on income from patents to boost science development
- 1p increase in corporation tax for small firms to be deferred
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| FAMILIES - Free school meals to an extra 500,000 low income families
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