Here is a key point summary
U-turn on tax credit -cuts abandoned
No cuts to police budgets in England and Wales.
Effectively reduction across the government departments in “efficiency savings” ( how these savings are made is unclear) and funds from this and tax avoidance to fund health, social care, pensions, NHS and to spread economic power across the UK, improving infastructure and increase housing.
Housing, infrastructure and transport featured largely. Quote from the Chancellor “We are the Builders”
General theme of devolving power and costs from the state, to the private sector and local authorities.
Growth & Inflation
- GDP growth forecast for 2015 unchanged to 2.4% then to 2.4% in 2016, 2.5% in2017
- 2015 borrowing forecast is revised up to £73.9bn,£49.9bn in 2016/2017, 24.8bn 2017/2018
- 10.1bn surplus still forecast for 2019/2020
- Government debt as a proportion of GDP up from 79.1% to 82.5% for 2015/2016, 81.7% for 2016/2017
- 3% higher stamp duty for buy to let and second home to fund right to buy and 135,000 Help to Buy shared ownership home
- Local authorities with responsibility for social care to be allowed to levy a new precept of up to 2% on council tax
- 2.3bn directly to developers to build “starter homes” for first-time buyers
- £4bn for ownership schemes to provide more properties for households earning less than £80,000 (or £90,000 in London) who want to get on the housing ladder.
Social,Personal Tax and Pension
- U -Turn on tax credits which will remain unchanged
- Housing benefit for new social tenants to be capped at same level as private sector
- State Pension to rise according to life expectancy
- Increase ins state pension to £119.30 a week next year
- Single tier pension from April 2016 to £155.65 per week
- CGT to be paid within 30 days by 2019
- New Advance Assurance to help smaller companies get R&D tax credits – sales below £2m, less than 50 employees
- Uniform business rates to be abolished
- Business Rates review to report Budget 2016 – but small business scheme continued for extra year
- Apprenticeship levy 0.5% with £15,000 allowance to every employer