Wednesday, 8 July 2015

Key points from the Budget

Deficit forecast: 3.7% in 2015/16, 2.2% in 2016/17, 1.2% in 2017/18, 0.3% in 2018/19, SURPLUS 0.4% in 2019/20
  • NHS: £8 billion more a year, on top of previous £2 billion commitment. £10 billion yearly real terms rise.
  • Public sector pay: Pay rises frozen at 1% for four years.
  • Tax avoidance: £750 million for HMRC to go after tax evaders.
  • Non-doms: Abolishing permanent non-dom tax status.
  • Banks: Bank levy reduced, new 8% surcharge on bank profits.
  • Transport: Tax on new cars to go into new roads fund. Fuel duty remains frozen this year.
  • Higher education: Student maintenance grants replaced with loans from 2016-17.
  • Devolution: More devolved powers for Manchester. Devolution for Sheffield, Liverpool and Leeds. Oyster cards for the North.
  • Housing: Mortgage tax relief for buy to let landlords restricted to basic rate.
  • Inheritance tax: Threshold increased to £1 million in 2017.
  • Business: Annual Investment Allowance for small and medium sized firms raised to £200,000.
  • Corporation tax: Corporation tax cut to 19% by 2017 and 18% by 2020.
  • Welfare: New youth obligation to earn or learn, no housing benefit for 18-21 year olds.
  • Childcare: Free childcare for 3/4 year olds of up to 30 hours a week.
  • Disability: ESA for new claimants cut by £30 a week.
  • Welfare: working age benefits frozen for four years.
  • Housing: Rents in social housing to be cut by 1% a year for next four years.
  • Tax credits: Threshold at which tax credits withdrawn down from £6420 to £3850
  • Benefit cap: Cut to £23,000 in London and £20,000 elsewhere.
  • Child tax credits: Limited to two children from 2017.
  • Tax: Personal allowance raised to £11,000. Higher rate threshold raised to £43,000.
  • Defence: spending to increase at least in line with inflation every year, commitment to 2% of GDP.
  • Wages: Introducing new compulsory National Living Wage from next April, £9 an hour for over 25s by 2020.

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