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
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