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General - The Budget - View Post

SciFiBoy on 22 April 2009
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source: http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm

At-a-glance: Budget 2009

These are the areas where Alistair Darling is making significant announcements in Wednesday's Budget. This at-a-glance guide will be updated with the key points as he speaks:

CIGARETTES AND ALCOHOL

• Alcohol and cigarettes taxes to go up 2% from midnight - one estimate is that it would put 5p on the average pint of beer

• Fuel duty to rise by 2p per litre from September

CAR SCRAPPAGE SCHEME

• From next month until March 2010 motorists to get £2,000 discount on new cars if they trade in cars older than 10 years

TAX
  • Income tax for those earning more than £150,000 to rise to 50% from April 2010
  • Tax relief on pensions to be reduced for people on more than £150,000 a year
    • UK ECONOMY

    • Economy forecast to shrink 3.5% in 2009

    • Growth expected to pick up in 2010, expanding by 1.25%.

    • Economy to grow by 3.5% annually from 2011

    • Public borrowing to increase to £175bn this year

    • Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after

    • Consumer price inflation to fall to 1% by end of year.

    JOBS AND TRAINING

    • Government support for economy to protect 500,000 jobs

    • All long-term unemployed under 25s to be offered job or training

    • £1.7bn additional resources for Job Centre network

    • £250m funding to help people get work experience in growth industries

    • Funding to create 54,000 new places in sixth form education

    HOUSING

    • Scheme to guarantee mortgage backed securities to boost lending

    • Stamp duty holiday for homes up to £175,000 to be extended to end of year

    • Extra £80m for shared equity mortgage scheme

  • £500m to kickstart stalled housing projects
  • £100m for local authorities to build energy efficient homes
  • £50m to upgrade housing for the armed forces
    • GOVERNMENT SAVINGS

    • An extra £9bn in efficiency savings is planned

    • Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

    BENEFITS
  • Child tax credit to rise by £20 by 2010
  • Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children
    • SAVINGS
  • Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year
    • ENVIRONMENT
  • £525m for offshore wind projects
  • £435m support for energy efficiency schemes
    • HELP FOR BUSINESS
  • Loss-making companies to be able to reclaim more taxes paid in the last three years
    • PENSIONERS
  • Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension
  • Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year
  • The basic state pension will be increased by at least 2.5%, regardless of inflation

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