The Budget at a glance - News - Evening Standard
       

The Budget at a glance

Here are the main points of Chancellor Alistair Darling's Budget:

* The Chancellor rose to deliver his Budget at 12.31pm.

* Mr Darling expects the economy to begin to grow again by the end of this year.

* Total policy support for the UK economy is expected to protect up to 500,000 jobs.

* Forecast for GDP growth in 2009 is minus 3.5%.

* Growth of 1.25% forecast for 2010.

* From 2011, growth of 3.5% per annum forecast.

* Inflation expected to continue to come down sharply, to 1% by the end of the year.

* Deficit expected to halve in four years.

* Extra £1.7 billion for Job Centre Plus network.

* From January, everyone under 25 and out of work will receive a job or training.

* Pledge to create 250,000 extra jobs and £260 million extra for skills and training.

* For the next two years, £250 million and then £450 million to maintain 54,000 sixth form places.

* More help for homeowners out of work to reduce repossessions.

* Stamp duty holiday on homes up to £175,000 extended to end of year.

* Loss-making firms can reclaim tax on profits from past three years.

* Car industry scrappage scheme of £2,000 for cars over 10-years-old from next month to March 2010.

* Budget measures represent fiscal easing of 0.5% of GDP this year.

* Public sector borrowing to hit £175 billion this year - 12% of GDP - but to fall to 9.1% in two years.

* From April 2011 pension tax relief restricted for those on incomes over £150,000.

* No income tax increase this year, but the planned new top income tax rate of 45% on incomes above £150,000 will be increased to 50% and take effect from next April - a year early.

* Fuel duty will increase by 2p per litre in September and then by 1p a litre above indexation each April for the next four years.

* Alcohol duties will go up by 2% from midnight tonight. There will be an increase in tobacco duty of 2% from 6pm tonight. These measures will raise over £6 billion by 2012.

* £5 billion further efficiency savings in public services, rising to £9 billion by 2013/14.

* Capital investment to continue until the London Olympics, and to be 1.25% of GDP after 2013.

* Extra £1 billion to help climate change measures.

* £50 million to modernise armed forces housing.

* North Sea oil exploration incentives.

* Main capital allowance for firms doubled to 40%.

* Extra funding to extend broadband network.

* £750 million strategic investment fund announced to help emerging technologies.

* World's first carbon budget - £435 million extra for energy efficiency measures for businesses and homes.

* £525 million new funds and support for offshore wind projects.

* £4 billion more for renewable energy projects.

* New power plants exempt from climate change levy from 2013.

* From April next year, child element of child tax credit up £20.

* Grandparents who are carers of children will see that work qualify towards state pension.

* Pensions will rise in real terms.

* Winter fuel allowance for pensioners to be maintained.

* Capital disregard on Pension Credit to be raised from £6,000 to £10,000 from November.

* ISA savings tax free limit raised to £10,000 (£5,100 in cash) for over-50s this year and for everyone else next year.

* The Chancellor sat down at 1.21pm.

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