By: Caterina Glenn
Pre Budget News – The latest report
The Chancellor and Government have today concluded some of the following:
Time to pay arrangements for businesses extended for “as long as necessary”. As many as 160,000 companies have taken up this scheme.
Exemption for business rates to be extended into 201-2011 – for properties at a rateable value below £18,000
Next year’s planned rise in corporation tax for small businesses from 21% to 22% has been shelved
Over-65s will have to work fewer hours to qualify for working tax credit; over-50s unemployed to be given new training
Bingo duty cut from 22% to 20%
The VAT standard rate is returning to 17.5% on 1 January 2010 as planned.
GDP growth next year will 1 to 1.5%, 3.5% in 2011 and 3.5% in 2012. The third quarter of 2009 saw GDP shrink 0.3%. 2009 will see the economy reduce by 4.7%.
Inflation to fall back to 1.5% by end 2010
Potential losses from the government’s intervention into banks will fall to £10bn, from an anticipated £50bn
The budget deficit will be £178bn this year, a little larger than first thought. Next year the deficit will fall by £2bn to £176bn. 2011 will see it fall to £140bn, 2012, £117bn and 2013, £96bn.
Up to £160m will be invested in clean energy and low carbon technology. This will include £90m for green infrastructure projects
A £500m capital growth fund will be set up to aid businesses struggling to get access to credit.
The UK’s net debt as a percentage of GDP stands at 56%. The figure would rise next year to 65% before rising to 78% by 2014/2015
Electric cars will be exempt from company car tax for the next five years and tax allowances will be introduced for electric vans.
Pharma and bio-tech patents profits will be taxed lower, at 10% corporation tax
Households will be charged an extra 50p per month on their landlines to help the government fund the expansion of faster broadband across the country.
Up to 10,000 students from low income backgrounds will receive financial support and helped into internships and businesses
Pension tax relief to be cut for people earning more than £150,000
The individual inheritance tax threshold will be frozen at £325,000, married couples at £650,000
Current spending growth of 0.8% to hold until 2014-2015
Another clamp down on tax avoidance. Darling will be looking at 100,00 offshore accounts to protect £5bn a year of revenues
£5bn in public spending savings through outsourcing of prisons and reforming legal aid
A one-off levy on banking bonuses worth more than £25,000 to put £500m back into the UK’s coffers.
No public spending review before the general election.
£2.5bn to support military operations along with £5m set aside to help returned soldiers set up businesses.
From 2011, National Insurance contributions will rise by 0.5% for all employer, employee and self-employed rates but those paid less than £20,000 will be spared, saving £3bn a year.