24
Mar
Budget 2011: Key points
Budget 2011: Key points from the telegraph....
FUEL
Fuel duty cut by 1p per litre this year.
Inflation rise in fuel duty delayed until 2012. Fuel duty
escalator, which adds 1p to fuel duty on top of inflation each
year, to be cancelled for the rest of Parliament
Plans to switch air passenger duty (APD) from passengers to
planes dropped. This year's APD rise postponed for one year.
Government will seek to impose the tax on private jets
Vehicle Excise Duty increases in line with RPI (5.5pc), and frozen
for heavy goods vehicles
SIN TAXES
No new increase on alcohol or tobacco. Pint of beer up 4p, bottle
of wine up 15p, bottle of spirits up 54p. 25p on can of
"super-strength" lager. Pint of lower strength 2.8pc abv beer to
fall by 18p.
Tobacco duty increases by 2pc above inflation. Hand-rolling
tobacco up by 67p. Pack of economy cigarettes up 50p, premium
cigarettes up 33p. 10p on pack of five small cigars, 17p on pack of
pipe tobacco. Tobacco duty regime reformed
PERSONAL TAX
Personal tax allowance rises by £630 to £8,105 in April
2012 - a real increase of £48 a year or £126 in cash
terms
Consultation on merging National Insurance and Income Tax
Not proposing to increase taxes for pensioners
50p tax rate will be temporary measure - video
Income Tax relief on Enterprise Investment Scheme increases from
20pc to 30pc next month
Charge on non-domiciled taxpayers increases from £30,000
for those here for seven years to £50,000 for those in the
country for 12 years, raising more than £200m
Council tax frozen or reduced this year in every English
council
Read Head of Personal Finance Ian Cowie's blog on how the tax
changes will affect you
HOMEOWNERS
£250m fund for first-time buyers under shared equity
scheme
Support for Mortgage Interest scheme extended to January
2013, reducing mortgage arrears
One first-time buyer gives her views on the Government's
plans here
GROWTH
As expected, the Chancellor outlined a revised growth forecast amid
a grim backdrop of high inflation and public sector borrowing. The
Office for Budget Responsibility forecasts growth of:
2011 2.1pc to 1.7pc rise
2012 2.6pc to 2.5pc rise
2013 2.9pc rise
2014 2.9pc rise
2015 2.8pc rise
Inflation expected to remain between 4pc and 5pc this year,
before dropping to 2.5pc next year
DEBT
National debt forecast to be 60pc of national income this year
before peaking at 71pc and falling to 69pc by the end of the
spending review period
Borrowing expected to be £146bn this year, £3bn under
target. Borrowing to fall to £122bn next year, then
£101bn in 2012/13, £70bn in 2013/14, £46bn in
2014/15 and £29bn in 2015/16
BUSINESSES
Corporation Tax cut by 2pc from April - rather than 1pc as
previously announced - and will fall by 1pc in each of the next
three years to reach 23pc. Bank Levy rate to be adjusted next year
to offset the effect of Corporation Tax reduction on banks
Small business rate relief holiday extended by one year to
October 2012, at a cost of £370m
Entrepreneurs Relief scheme doubles to £10m from April
6
Direct tax indexed by Consumer Prices Index (CPI), which
excludes mortgage costs, from April 2012
Small companies' research and development tax credit rises to
200pc in April and 225pc in 2012
New 5.75pc rate on overseas financing income coming into the
UK
YOUTH UNEMPLOYMENT
100,000 work experience placements over two years, up from
20,000
Funding for up to 50,000 additional apprentices over next four
years
EMPLOYMENT AND SKILLS
21 new Enteprise Zones to be set up, with up to 100pc tax discount
rates
Funding for new university technical colleges for vocational
training: 24 colleges instead of 12 expected
New export credits for manufacturers, a technology and
innovation centre and nine new university centres
£100m for new science facilities in Cambridge, Norwich,
Harwell and Daresbury, funded from Bank Levy
STATE PENSION AGE
State Pension Age to rise to 66 by 2020
GREEN MEASURES
Green Investment Bank created with an additional £2bn, to
start operation in 2012
UK becomes the first country to introduce a carbon price floor
for the power sector
Climate change levy discount on electricity for those signing up
to climate change agereements will rise
Public money will cut unusually high water bills in South West
England
INFRASTRUCTURE
Investment of £200m in regional railways
Central funding of £100m to help councils repair
potholes
PUBLIC SECTOR
Pay rise of £250 for armed forces, prison, NHS, teachers and
civil servants earning less than £21,000