Darling's Budget Report Highlights

Highlights of Chancellor Darling's first Budget Report aimed at raising taxes on high-polluting cars, cigarettes, alcohol whilst aiming to help poorer families and pensioners.

The 2008 Budget Report - Key Points

Lifestyle Tax

Pack of 20 cigarettes - up 11p
Pack of 5 cigars - up 4p
Beer - up 4p a pint
Wine - up 14p a bottle
Spirits - up 55p a bottle
Cider - up 3p a litre

Taxes on alcohol will go up by 2% above inflation over the next 4 years. These taxes on alcohol are expected to bring the government £1.5billion over the next three years.

Cars and Travel

2009 expects to see vehicle excise duty reformed
2010 - Lowest emission new cars pay no road tax in first year, highest polluting new cars pay £950
Fuel - 2p increase on petrol now held back until October this year and rising 0.5p per litre in 2010
Air Travel - New measures at Heathrow to help speed up time it takes to go through security checks
Greener Travel - Extra 10% on plane duty. Airlines will have to pay more to become "greener"

Housing and Property

£8billion dedicated to new, cost effective housing
Stamp Duty - In shared ownership schemes, no stamp duty until occupant owns at least 80%
Mortgages - Efforts into how long-term fixed rate mortgages can help first-time buyers get on and stay on the property ladder
Council Tax - Rises of 3.9% from April this year
Housing - New sites have been identified for 70,000 new homes
Key workers - Help for key workers, e.g. teachers and nurses, to borrow money on shared equity schemes

Pensions, Savings, Family Investments

Pensioners over 60 will receive a £50 increase in winter fuel allowance from £200 to £250 and from £300 to £400 for pensioners over 80
Savings Gateway - A savings scheme for those on lower incomes to be launched by 2010.
Cash ISA limit to increase to £3,600 starting in April to encourage people to save.
Child Poverty - The government plans to invest an additional £125 million over 3 years to help stop child poverty.
Child Benefits - Starting in April 2009, child benefits will increase to £20 for the first child and an additional £50 will be added to child tax credit, above inflation, for lower and midde-income families.

Education, Poverty, and Public Spending

£200m additional spending to improve GCSE results.
£30m fund to improve teachings of science
Public Spending - will increase 2.2% in the next 3 years
British Troops - £2b more to be spent in 2008 with £900m on equipment
NHS - The next decade will focus on making the NHS a world class service
Poverty - Goal to eliminate poverty in the UK by investing an extra £125m over 3 years
Poor families with one child will receive a further £17 per week
Family with 2 children and earning up to £28,000 per year will receive and extra £130 per year
Millions of customers on pre-paid meters expected to get a better deal

Environment

Supermarkets will be taxed on plastic bags by 2009 if they do not do more to reduce their use
Make Homes Greener - £26m to help families cut fuel bills
Non-Domestic Buildings - Zero carbon for non-dom buildings by 2019
Emission Cuts - Target to cut emissions 80% by 2050
Climate Change - Levy to rise alongside inflation

Economy

Growth Forecasts - 2008 set between 1.75% and 2.25%; 2009 between 2% and 2.25%; 2010 between 2.5% and 3%
GDP - Goal for growth between 2.25% and 2.75%, same expected growth between 2008 - 2010
Borrowing - Increase from £38b to £43b this year, equivalent to 2.9% of national income with an expected decline to £23b or 1.3% by 2012/13
Total Borrowing - £140b over the next 4 years
Public Spending - Increases in public spending up 2.2% per year

Corporation Tax

Small Business - Corporation tax to rise to 21% in 2008-09 then rise to 22% the year after
Skills - £60m dedicated to "skills gap"
Funds - Small business funding will increase by £60m
Women Entrepreneurs - Capital fund of £12.5m aimed to encourage more women entrepreneurs
Tax - Capital gains tax will be charged a flat rate of 18%

Published on March 13, 2008