Budget 2013 Live: Key points at a glance

Wednesday, 20 March 2013 01:05

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Growth forecasts – OBR – 0.6 per cent in 2013 1.8 per cent in 2014, 2.3 per cent in 2015, 2.7  per cent in 2016 and 2.8 per cent in '17"

2013 forecast cut by half from 1.2 per cent to 0.6 per cent

Debt forecasts – Chancellor claim that deficit has been cut by a third depends on classifying it as % of GDP not £.

Debt forecast to increase as a percentage of GDOP for next five years.75.9 of GDP in 2012-13 – 79.2 in 2013-14 – 82.6 in 2014-15  85.1 in 2015-16 – 85.6 in 2016-17 – 84.8 in 2017-18
Government to miss its own debt target by two years.

Income tax – Personal allowance to be raised to £10,000 from April 2014 – A year earlier than planned. The personal allowance will rise to £9,440 from April 2013.

Employers tax – The first £2,000 to be taken off all employers' National Insurance bill. 450,000 small businesses will no longer pay employers National Insurance

Fuel duty – Planned 3p-a-litre rise for September postponed again

Beer duty – Beer duty rise cancelled and 1p a pint cut in duty

Alcohol duty – All other alcohol duties to be raised by two per cent above inflation

Corporation Tax – To be reduced to 20 per cent from 2015. Increase in bank levy to pay for it.

Pensions – Single rate state pension of £144 a week brought forward one year to 2016.

Housing – Shared equity schemes extended with interest-free loans of up to 20 per cent of the property available on new builds.

Government backed £130 billion new mortgage lending scheme for 3 years from 2014

QE– Asset purchase facility to remain in place for next year

Bank of England remit will be changed  – meeting on publication of minutes between Chancellor and Governor
MPC to review how intermediate thresholds might work in UK

GDP – Growing, just, in 1st qtr so UK set to miss triple-dip

Jobs – OBR says 600,000 new jobs will be created in next 12 months and claimant count to fall by 60,000

Schools and health budgets will remain ringfenced

Other government departments to see a one per cent fall in budget for each of the next two years

£11.5 billion more departmental spending cuts to be announced in spending review in June.

Spending review – Gove looking to find £11.5bn in next SR

Infrastructure – Extra £3bn a year from 2015-16 for five years to 2020, totaling £15 billion.

Business – Localised funding as per Heseltine recommendation – single competitive fund for local authorities

Fivefold increase in govt procurement budgets spent through small business research initiative

New shale gas field announcement

Capital gains tax relief for sale of businesses to employees

Tax relief for investment in social enterprises

Stamp duty axed for share trading on growth markets like AIM

Public sector pay – Pay rise will be capped at one per cent in 2015-16, like most benefits. Service personnel to be exempt from public sector 1 per cent pay rise cap and limits on "progressive" pay rises.

Tax avoidance – New tax avoidance measures including agreements with isle of Man and Guernsey. Aims to get back £3bn in tax.

Childcare – 20 per cent of the cost for each child – Families to receive up to £1,200 ech year in childcare voucher costs

 

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