Key points
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“Britain’s economic
plan is working, but the
job is not done,” the
chancellor George
Osborne said in one of the most leaked
statements in history.
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“Responsible” was the key word from the
chancellor’s 50
minute speech.
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£100m of Libor fines will be
made available to
military charities and to extend support in
the
police, fire and ambulance services.
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April 2014 will see the state pension rise by
£2.95 per week, meaning
pensioners will be
£800 better off every year.
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Based on the latest life expectancy figures,
it
was announced that the government plans
to increase the state pension age earlier than
originally planned. It will be increased from 68
in the mid-2030s to 69 by the late-2040s.
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The fall in GDP from peak to trough between
2008 and 2009 was not 6.3 per cent as
previously thought. It was 7.2 per cent instead.
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From April
2015, a new transferable tax
allowance will be made available for married
couples. Available to all basic rate
taxpayers,
it enables people to transfer £1,000 of their
personal allowance to their wife, husband, or
civil partner.
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big numbers
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0.4 per cent - The
percentage the OBR predicts the eurozone
will shrink by in 2014.
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7.2 per cent - The
revised decline in GDP in 2008-09, increased
from the original 6.3 per cent originally predicted.
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43 - The number months the
coalition has been in charge of
government.
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400,000 - The
number total new jobs is expected to rise by
December 2014.
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1.5m - The amount of jobs for
young people under 21 that
National Insurance contributions will be removed from.
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£300m - The amount the housing
revenue account borrowing
limit will be increased by.
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£111bn - The amount the government
will borrow this year,
falling in 2014-15 to £96bn, falling to £79bn in 2015-16,
£51bn
the year after and £23bn the year after that.
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Need to know:
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The statement in brief
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•
From next year, the government will introduce
a new
cap on total welfare spending.
However, state pension will be excluded. The
chancellor said this is “better controlled over a
longer
period”.
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In line with the move on Aim shares last year,
exchange-traded fund stamp
duty will be
abolished. This is a drive to encourage funds to
locate
in the UK.
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From April 2014, the UK will be one of the
first
countries to introduce a tax relief for
investment in social enterprises and new social
impact
bonds.
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The two Help to Buy schemes have already
helped
many new home owners. It was
announced Aldermore and Virgin
are
expected to join the scheme in December
2013.
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The business rate relief scheme for small
businesses, which was due to end in April
2014,
will be extended for a further year.
Additionally, inflation increase for all business
premises will be capped at 2
per cent from
2014.
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KPMG’s report last week confirmed for the
second
year running, Britain has the most
competitive business tax system.
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Fuel duty will be frozen instead of going up by
2p a
litre.
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OBR figures
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Figures from the Office of Budget
Responsibility
(OBR) shows:
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It has “reassessed the depth of the great
recession”.
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It has revised its UK growth forecast for 2013
from 0.6 per cent to 1.4
per cent. It has also
increased for 2014 from 1.8 per cent to 2.4
per
cent. For the next four years, it sees growth at
2.2
per cent, 2.6 per cent, 2.7 per cent and 2.7
per
cent.
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•
The OBR still forecasts the eurozone will
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