Alistair Darling's Budget at a glance
Wednesday, 22 April 2009
Here are the main points of Chancellor Alistair Darling's Budget:
- The Chancellor rose to deliver his Budget at 1231.
- Mr Darling expects the economy to begin to grow again by the end of this year.
- Total policy support for the UK economy is expected to protect up to 500,000
jobs.
- Forecast for GDP growth in 2009 is minus 3.5%.
- Growth of 1.25% forecast for 2010.
- From 2011, growth of 3.5% per annum forecast.
- Inflation expected to continue to come down sharply, to 1% by the end of the
year.
- Deficit expected to halve in four years.
- Extra £1.7 billion for Job Centre Plus network.
- From January, everyone under 25 and out of work will receive a job or training.
- Pledge to create 250,000 extra jobs and £260 million extra for skills and
training.
- For the next two years, £250 million and then £450 million to maintain 54,000
sixth form places.
- More help for homeowners out of work to reduce repossessions.
- Stamp duty holiday on homes up to £175,000 extended to end of year.
- Loss-making firms can reclaim tax on profits from past three years.
- Car industry scrappage scheme of £2,000 for cars over 10-years-old from next month to March 2010.
- Budget measures represent fiscal easing of 0.5% of GDP this year.
- Public sector borrowing to hit £175 billion this year - 12% of GDP - but
to fall to 9.1% in two years.
- From April 2011 pension tax relief restricted for those on incomes over £150,000.
- No income tax increase this year, but the planned new top income tax rate of
45% on incomes above £150,000 will be increased to 50% and take
effect from next April - a year early.
- Fuel duty will increase by 2p per litre in September and then by 1p a litre above
indexation each April for the next four years.
- Alcohol duties will go up by 2% from midnight tonight. There will be an increase
in tobacco duty of 2% from 6pm tonight. These measures will raise over £6
billion by 2012.
- £5 billion further efficiency savings in public services, rising to £9
billion by 2013/14.
- Capital investment to continue until the London Olympics, and to be 1.25% of
GDP after 2013.
- Extra £1 billion to help climate change measures.
- £50 million to modernise armed forces housing.
- North Sea oil exploration incentives.
- Main capital allowance for firms doubled to 40%.
- Extra funding to extend broadband network.
- £750 million strategic investment fund announced to help emerging technologies.
- World's first carbon budget - £435 million extra for energy efficiency measures
for businesses and homes.
- £525 million new funds and support for offshore wind projects.
- £4 billion more for renewable energy projects.
- New power plants exempt from climate change levy from 2013.
- From April next year, child element of child tax credit up £20.
- Grandparents who are carers of children will see that work qualify towards state
pension.
- Pensions will rise in real terms.
- Winter fuel allowance for pensioners to be maintained.
- Capital disregard on Pension Credit to be raised from £6,000 to £10,000
from November.
- ISA savings tax free limit raised to £10,000 (£5,100 in cash) for
over-50s this year and for everyone else next year.
- The Chancellor sat down at 1.21pm.
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