Bitesize budget

Budget 2007

Key points from Brown's 11th budget

Thursday, March 22, 2007

	Economy Growth forecasts unchanged from December’s pre-Budget report, at 2.75 to 3.25% this year, slipping to 2.5 and 3% in 2008 and 2009.		Personal Tax A 2p cut in basic-rate income tax from 2008, but the 10% starting band for the first £2,150 of taxable income will be axed from 2009.
	Smokers Cigarettes rose 11p last night, VAT on nicotine replacement products will fall to 5% for a year from1 July, to coincide with the smoking ban.		Drinkers Duty on beer rises by 1p a pint, cider by 1p a litre and wine by 5p a bottle. The rate on sparkling wine rises by 7p a bottle. Spirits frozen for 10th Budget in a row.
	Business Tax Corporation tax will be cut from 30p in the pound to 28p from next April, but the smaller companies rate is rising from 20p this year to 22p by 2009 and capital allowances are being cut.		Families By 2010, child benefit will rise to £20 aweek for the first child. The Chancellor promises a single-income couple with two children earning £27,000 will be about £500 a year better off from 2009.
	Education Spending will rise by 5 per cent a year, reaching £90bn by 2010-11, taking education spending up to 5.6 per cent of GDP. The amount of money spent per pupil will rise to £6,600 by 2010.		Defence Spending The MoD will get an extra £400m to cover the cost of troops inAfghanistan and Iraq, while £200m will be allocated to global peace-keeping. Another £86m is being put towards the fight against terrorism.
	Cars Tax on heavily polluting vehicles will rise from£210 to £300 next year and to £400in 2008, while the most environmentally friendly cars, such as the Prius, will pay £35. Fuel duty rises by 2p a litre from October.		Pensioners A further £6bn to help pensioners from companies that have gone bust. Personal tax allowance up by £1,180 in 2008. By April 2011, pensioners over 75 will only pay tax on income over £10,000.
	Green Measures New homes up to £500,000 with zero carbon rating will be exempt from stamp duty. Pensioners can apply for grants of up to £4,000 for insulation and heating. £800m put aside for rainforest conservation.		Sell-Offs Sumraised from disposal of state assets to double to £36bn by 2011.This includes £6bn fromsale of student loan book. Also plans to sell more radio spectrum, Tote and possibly part of Channel tunnel rail link.