{"id":1207,"date":"2011-05-11T10:00:40","date_gmt":"2011-05-11T09:00:40","guid":{"rendered":"http:\/\/esmartproducts.co.uk\/?p=1206"},"modified":"2011-05-11T10:00:40","modified_gmt":"2011-05-11T09:00:40","slug":"the-key-announcements-from-the-chancellor%e2%80%99s-second-budget-speech","status":"publish","type":"post","link":"https:\/\/www.suretyfp.com\/wordpress\/?p=1207","title":{"rendered":"The key announcements from the Chancellor\u2019s second Budget speech"},"content":{"rendered":"

Economy<\/strong>
\nThe independent Office for Budget Responsibility (OBR) forecasts growth of 1.7% (down from 2.1%) for 2011, 2.5% next year, 2.9% in 2013, 2.9% in 2014 and 2.8% in 2015 (this compares to OECD forecast of 1.5% for 2011 and 2.0% for 2012).<\/p>\n

The OBR forecasts inflation to remain between 4% and 5% for most of this year, dropping to 2.5% next year and 2% in two years\u2019 time.<\/p>\n

Borrowing<\/strong>
\nBorrowing for this year to be \u00a3146bn \u2013 below the Government target. Borrowing will fall to \u00a3122bn next year, then \u00a3101bn in 2012\/13, \u00a370bn in 2013\/14, \u00a346bn in 2014\/15 and \u00a329bn in 2015\/16.<\/p>\n

Public sector net borrowing will decline from its peak of 11.1% of GDP in 2009\/10 to 1.5% of GDP in 2015\/16; the cyclically-adjusted or \u201cstructural\u201d current deficit will be eliminated by 2014\/15, with a projected surplus of 0.4% of GDP in that year, rising to 0.8% of GDP in 2015\/16.<\/p>\n

Public sector net debt will peak at 70.9% of GDP in 2013\/14, before declining to 70.5% of GDP in 2014\/15 and 69.1% of GDP in 2015\/16.<\/p>\n

Fuel duty<\/strong>
\nNew fair fuel stabiliser to be introduced, funded by increasing the supplementary charge on North Sea oil and gas production which increased from 20% to 32% from 24th March.<\/p>\n

Fuel duty cut by 1p a litre from 6pm on 23rd March.<\/p>\n

Fuel duty escalator that adds 1p to fuel duty on top of inflation each year to be cancelled for the rest of this Parliament.<\/p>\n

Taxation <\/strong>
\nPersonal tax allowance to rise from \u00a37,475 to more than \u00a38,105 in April 2012.<\/p>\n

43 tax reliefs abolished to simplify the system.<\/p>\n

Merging of National Insurance Contributions and Income Tax.<\/p>\n

Rate relief holiday for small businesses extended to
\nOctober 2012.<\/p>\n

Tax avoidance loopholes to be closed, raising \u00a31bn.<\/p>\n

Charge on non-domiciled taxpayers to increase from \u00a330,000 for those here for seven years to \u00a350,000 for those in the country for 12 years.<\/p>\n

Council tax frozen or reduced this year in every English council.<\/p>\n

Housing<\/strong>
\nReviews launched of the revenue raised by the 50% tax rate and the taxation of very high-value property.<\/p>\n

\u00a3250m to help first-time buyers purchase newly-built homes.<\/p>\n

Support for Mortgage <\/strong>
\nInterest scheme extended to January 2013.<\/p>\n

Enterprise
\n<\/strong>Corporation Tax cut by 2% from 6th April 2011 – rather than 1% as previously announced – and will fall by 1% in each of the next three years to reach 23%. Bank Levy rate to be adjusted next year to offset the effect of Corporation Tax reduction on banks.<\/p>\n

\u00a3350m worth of regulation on businesses removed.<\/p>\n

Relief for entrepreneur tax doubled to \u00a310m.<\/p>\n

Entrepreneurs\u2019 relief scheme doubled to \u00a310m from 6th April 2011.<\/p>\n

Small business rate relief holiday extended by one year to October 2012.<\/p>\n

21 new enterprise zones to be funded, including in Manchester, Birmingham and London. Ten others to be named in the summer.<\/p>\n

Help for manufacturing to include new export credits, a technology and innovation centre and nine new university centres.<\/p>\n

Investment of \u00a3100m in new science facilities in Cambridge, Norwich, Harwell and Daresbury, funded from the Bank Levy.<\/p>\n

All planning bodies to prioritise growth. Default answer to development will be \u201cyes\u201d.<\/p>\n

Income Tax relief on Enterprise Investment Scheme\u2019s increased from 20% to 30%.<\/p>\n

Small companies\u2019 Research and Development tax credit increased to 200% from 6th April and 225% in 2012.<\/p>\n

New funding to double the number of university technical colleges from 12 to at least 24.<\/p>\n

Number of places on a new work experience scheme to increase to 100,000 over two years, rather than 20,000 as previously announced.<\/p>\n

Funding for 40,000 new apprenticeships for young unemployed.<\/p>\n

Pensions<\/strong>
\nState Pension Age to rise to 66 by 2020.<\/p>\n

Government to seek automatic mechanism for future increases in state pension age, based on regular reviews of longevity.<\/p>\n

New single-tier pension, worth \u00a3140 a week, set just above means-tested pension credit of \u00a3137.35. This will not apply to current pensioners.<\/p>\n

Children<\/strong>
\nNew tax-efficient children\u2019s savings account, known as the Junior Individual Savings Account (ISA).<\/p>\n

Environment<\/strong>
\nGreen Deal to reduce energy bills from next year.<\/p>\n

New \u201cGreen Investment Bank\u201d, will have access to \u00a33bn of funds and starts operating in 2012.<\/p>\n

The UK to become the first country in the world to introduce a carbon price floor for the power sector.<\/p>\n

Public money will cut unusually high water bills in South West England.<\/p>\n

Climate Change Levy discount on electricity for those signing up to climate change agreements will rise from 65% to 80% from April 2013.<\/p>\n

Plans to switch air passenger duty (APD) from passengers to planes have been dropped. This year\u2019s APD rise is postponed for a year, and the Government will seek to impose the tax on private jets.<\/p>\n

Giving<\/strong>
\nGift aid administration to be simplified, especially for small donations.<\/p>\n

10% Inheritance Tax discount for charitable donations.<\/p>\n

Infrastructure<\/strong>
\nInvestment of \u00a3200m in regional railways.<\/p>\n

Central funding of \u00a3100m to help councils repair potholes.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economy The independent Office for Budget Responsibility (OBR) forecasts growth of 1.7% (down from 2.1%) for 2011, 2.5% next year, 2.9% in 2013, 2.9% in 2014 and 2.8% in 2015 (this compares to OECD forecast of 1.5% for 2011 and 2.0% for 2012).<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1207"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1207"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1207\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}