Budget: the highlights
Mar 12 2008 By The Journal
CHANCELLOR Alastair Darling said that Britain is better placed than other economies to withstand the economic slowdown. He stressed that growth and low inflation will be maintained, as the economy has expanded for a record 10 years.
His goals are to tackle climate change and wipe out child poverty.
But he added that turbulence which started in US has affected all markets worldwide which he said poses ``major risk“ to world economies.
He said Britain has maintained confidence in the UK banking system and that growth forecasts lowered worldwide, but British economy grew by 3%, fastest of any economy.
This year, growth in the British economy will be between 1.75% and 2.25%, and growth will rise to 2.25%-2.75% in 2009 and 2.5%-3% by 2010. Inflation will rise before returning to 2% target in 2009. He added that debt has now fallen to 36.6% of GDP.
On fuel there is a planned 2p duty rise postponed to October, but fuel duty will rise by 0.5p per litre in real terms from 2010.
The defence budget has had longest period of increased spending in a generation, as have public services.
Housing benefit was reformed further. Work capability assessments for all long-term incapacity benefit claimants by April 2010.
Darling pleadged to eradicate child poverty and ensure 150,000 fewer children were in poverty. Measures to do this include : £17 more a week for poor families with one child and from April 2009, child benefit rising to £20 for first child. A Savings Gateway will be launched nationwide by 2010, offering incentives to more than 8 million people on low incomes.
In business there will be more help for small businesses, with capital gains tax remaining at 10%. £60m more for Small Firms Loan Guarantee Scheme, which will be extended to all small companies and a new target of 30% of Government contracts for small firms.
In education there will be £10m spent over five years to improve science teaching. Outside contributions will bring this figure up to £30m There will also be £60 million over three years to boost skills for those entering the labour market.
He also pledged new measures to speed up airport immigration and new funding for road pricing to cut down on congestion.
There will also be 70,000 new affordable homes each year. Shared equity schemes extended, and stamp duty scrapped until owners have 80% equity in these homes. There will also be more flexible mortgages urged, offering 10, 20 and 25 year fixed rates. And there would be sites identified for 70,000 more houses.
The environment was a central theme of the Budget with urgent action needed to reduce carbon emissions by 60% may be extended to 80% by 2050.
Darling also announced carrier bag legislation pledged in 2009 if usage does not fall. And there will be £26m spent next year to help homes cut their carbon footprint and energy consumption with
He said road tax should support lower emission cars. From 2009 there will be new bands for the most polluting cars. From 2010, lowest emission cars will pay no tax in first year.
SMOKING
:: Packet of cigarettes up 11p from 6pm.
:: Five cigars up 4p.
ALCOHOL
:: Taxes increase by 6% above inflation from midnight Sunday, then by 2% for the next four years.
:: 4p on a pint of beer.
:: 3p on a litre of cider.
:: Wine up 14p a bottle.
:: Spirits up 55p a bottle.
PENSIONS
:: Winter fuel payment for over-60s up £50 and for over-80s up £100.
The Chancellor sat down at 1321.
Read more on the Budget in tomorrow's Journal
