{"id":30522,"date":"2013-03-20T18:48:32","date_gmt":"2013-03-20T17:48:32","guid":{"rendered":"http:\/\/uk.news.yahoo.com\/budget-2013-key-points-122427441--finance.html"},"modified":"2013-03-20T18:48:32","modified_gmt":"2013-03-20T17:48:32","slug":"budget-2013-the-key-points-you-need-to-know","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/budget-2013-the-key-points-you-need-to-know\/","title":{"rendered":"Budget 2013: The Key Points You Need To Know"},"content":{"rendered":"
\n

George Osborne’s Budget lasted 54 minutes and contained a raft of measures as well as data about the state of the economy. Here is a handy guide.<\/p>\n

ECONOMY<\/strong><\/p>\n

:: The independent Office for Budget Responsibility predicts Britain will avoid a second quarter of negative growth and slipping into a triple-dip recession.<\/p>\n

:: OBR forecasts put growth for this year at 0.6%, down a massive 50% on its previous forecast of 1.2%.<\/p>\n

:: Growth forecasts for the coming years are now: 2014 – 1.8%, 2015 – 2.3%, 2016 – 2.7% and 2017 – 2.8%.<\/p>\n

:: The deficit has been cut by a third from 11.2% of GDP in 2009\/10 to 7.4% this year. It is forecast to drop to 2.2% by 2017\/18.<\/p>\n

:: Borrowing forecast to hit \u00a3114bn this year instead of \u00a3108bn, then \u00a3108bn in 2014, \u00a397bn in 2014\/15, then \u00a387bn, \u00a361bn and \u00a342bn in the following years.<\/p>\n

:: Proportion of national income spent by the state has fallen to 43.6%.<\/p>\n

:: Public sector net debt is due to be 75.9% of GDP this year, then 79.2%, 82.6%, 85.1%, 85.6% in following years falling to 84.8% in 2017\/18.<\/p>\n

:: The Bank of England’s Monetary Policy Committee keeps 2% inflation target but has its remit overhauled.<\/p>\n

CUTS AND SPENDING<\/strong><\/p>\n

:: Whitehall departmental budgets cut by 1% after \u00a311bn underspend this year.<\/p>\n

:: Bigger savings of \u00a311.5bn sought in the spending review for 2015\/16, up from \u00a310bn.<\/p>\n

:: Public sector pay cap of 1% extended by a year in 2015\/16. Military will receive full recommended increase and be exempt from changes to profession pay.<\/p>\n

:: New limit on “annually managed expenditure”, which includes welfare budget, debt interest and payments to the EU.<\/p>\n

:: Deal on the European budget secured by David Cameron saved Britain \u00a33.5bn.<\/p>\n

:: Infrastructure plans given and annual \u00a33bn boost from 2015\/16 – a total of \u00a315bn over the next decade.<\/p>\n

:: Plans to take forward two major carbon capture and storage projects.<\/p>\n

:: “Generous” new tax regime to promote early investment in shale gas and tax incentives for the manufacture of ultra low emission vehicles.<\/p>\n

TAX AND WELFARE<\/strong><\/p>\n

:: Corporation tax cut another 1% to 20% in April 2015 and small company and main rates of corporation tax merged at 20p.<\/p>\n

:: Corporation tax cut paid by rise in bank levy rate to 0.142% next year.<\/p>\n

:: Help for employees with more generous shareholder status, Capital Gains Tax relief for sales of business to workers and doubling tax free loans for commuter season tickets to \u00a310,000.<\/p>\n

:: Large new package of measures targeting tax avoidance and evasion to bring in \u00a33bn in unpaid taxes.<\/p>\n

:: New Employment Allowance from April 2014 taking off first \u00a32,000 from employer National Insurance bills. Means around 450,000 small businesses will pay no employer NI at all.<\/p>\n

:: Rise in personal allowance brought forward to 2014, meaning no income tax will be paid on the first \u00a310,000 of earnings.<\/p>\n

:: Extension to the Capital Gains Tax holiday.<\/p>\n

:: Tax-free child care vouchers worth \u00a31,200 per child and increased support for families with children on universal credit.<\/p>\n

HOUSING<\/strong><\/p>\n

:: New Help-to-Buy scheme for people struggling to build up a deposit to buy a house, worth \u00a3130bn in loans.<\/p>\n

:: Includes \u00a33.5bn for shared equity loans and Government interest-free loan worth 20% of the value of a new build house.<\/p>\n

PENSIONS AND SOCIAL CARE<\/strong><\/p>\n

:: Flat rate pension of \u00a3144-a-week brought forward to 2016.<\/p>\n

:: Cap on social care introduced in 2017 and set at \u00a372,000. Threshold for means-testing of help raised from \u00a323,000 to \u00a3118,000.<\/p>\n

:: Help for Equitable Life Policy holders extended to those who bought with-profits annuities before 1992, with payments of \u00a35,000 and extra \u00a35,000 for those on lowest incomes.<\/p>\n

FUEL AND BEER<\/strong><\/p>\n

:: Planned rise in fuel duty this autumn is cancelled.<\/p>\n

:: Planned 3p rise in beer duty tax scrapped and replaced by a 1p cut on a pint of beer.<\/p>\n

:: Beer duty escalator axed. Planned rises for other alcohol duties is retained.\u00a0<\/p>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\n

George Osborne’s Budget lasted 54 minutes and contained a raft of measures as well as data about the state of the economy. Here is a handy guide.<\/p>\n

ECONOMY<\/strong><\/p>\n

:: The independent Office for Budget Responsibility predicts Britain will avoid a second quarter of negative growth and slipping into a triple-dip recession.<\/p>\n

:: OBR forecasts put growth for this year at 0.6%, down a massive 50% on its previous forecast of 1.2%.<\/p>\n

:: Growth forecasts for the coming years are now: 2014 – 1.8%, 2015 – 2.3%, 2016 – 2.7% and 2017 – 2.8%.<\/p>\n

:: The deficit has been cut by a third from 11.2% of GDP in 2009\/10 to 7.4% this year. It is forecast to drop to 2.2% by 2017\/18.<\/p>\n

:: Borrowing forecast to hit £114bn this year instead of £108bn, then £108bn in 2014, £97bn in 2014\/15, then £87bn, £61bn and £42bn in the following years.<\/p>\n

:: Proportion of national income spent by the state has fallen to 43.6%.<\/p>\n

:: Public sector net debt is due to be 75.9% of GDP this year, then 79.2%, 82.6%, 85.1%, 85.6% in following years falling to 84.8% in 2017\/18.<\/p>\n

:: The Bank of England’s Monetary Policy Committee keeps 2% inflation target but has its remit overhauled.<\/p>\n

CUTS AND SPENDING<\/strong><\/p>\n

:: Whitehall departmental budgets cut by 1% after £11bn underspend this year.<\/p>\n

:: Bigger savings of £11.5bn sought in the spending review for 2015\/16, up from £10bn.<\/p>\n

:: Public sector pay cap of 1% extended by a year in 2015\/16. Military will receive full recommended increase and be exempt from changes to profession pay.<\/p>\n

:: New limit on “annually managed expenditure”, which includes welfare budget, debt interest and payments to the EU.<\/p>\n

:: Deal on the European budget secured by David Cameron saved Britain £3.5bn.<\/p>\n

:: Infrastructure plans given and annual £3bn boost from 2015\/16 – a total of £15bn over the next decade.<\/p>\n

:: Plans to take forward two major carbon capture and storage projects.<\/p>\n

:: “Generous” new tax regime to promote early investment in shale gas and tax incentives for the manufacture of ultra low emission vehicles.<\/p>\n

TAX AND WELFARE<\/strong><\/p>\n

:: Corporation tax cut another 1% to 20% in April 2015 and small company and main rates of corporation tax merged at 20p.<\/p>\n

:: Corporation tax cut paid by rise in bank levy rate to 0.142% next year.<\/p>\n

:: Help for employees with more generous shareholder status, Capital Gains Tax relief for sales of business to workers and doubling tax free loans for commuter season tickets to £10,000.<\/p>\n

:: Large new package of measures targeting tax avoidance and evasion to bring in £3bn in unpaid taxes.<\/p>\n

:: New Employment Allowance from April 2014 taking off first £2,000 from employer National Insurance bills. Means around 450,000 small businesses will pay no employer NI at all.<\/p>\n

:: Rise in personal allowance brought forward to 2014, meaning no income tax will be paid on the first £10,000 of earnings.<\/p>\n

:: Extension to the Capital Gains Tax holiday.<\/p>\n

:: Tax-free child care vouchers worth £1,200 per child and increased support for families with children on universal credit.<\/p>\n

HOUSING<\/strong><\/p>\n

:: New Help-to-Buy scheme for people struggling to build up a deposit to buy a house, worth £130bn in loans.<\/p>\n

:: Includes £3.5bn for shared equity loans and Government interest-free loan worth 20% of the value of a new build house.<\/p>\n

PENSIONS AND SOCIAL CARE<\/strong><\/p>\n

:: Flat rate pension of £144-a-week brought forward to 2016.<\/p>\n

:: Cap on social care introduced in 2017 and set at £72,000. Threshold for means-testing of help raised from £23,000 to £118,000.<\/p>\n

:: Help for Equitable Life Policy holders extended to those who bought with-profits annuities before 1992, with payments of £5,000 and extra £5,000 for those on lowest incomes.<\/p>\n

FUEL AND BEER<\/strong><\/p>\n

:: Planned rise in fuel duty this autumn is cancelled.<\/p>\n

:: Planned 3p rise in beer duty tax scrapped and replaced by a 1p cut on a pint of beer.<\/p>\n

:: Beer duty escalator axed. Planned rises for other alcohol duties is retained. <\/p>\n<\/div>\n

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