Earning our way out of recession: Budget at a glance

David Cameron pats the arm of Chancellor George Osborne after he delivered his Budget statement
David Cameron pats the arm of Chancellor George Osborne after he delivered his Budget statement
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DRIVERS had their hopes of avoiding another petrol pump increase later this year dashed by Chancellor George Osborne today. Here are the main points of the Budget statement

HEADLINES

• Income tax threshold raised by £1,000, meaning an extra £346 a year for basic rate taxpayers with two million people relieved of paying any income tax

• Corporation tax cut by 2% to 24% by April 1 and will drop further by 2014

• Rise in stamp duty to 7% for homes worth over £2m

• 50p income tax rate to be reduced to 45p and tax loopholes to be closed

• Child benefit threshold raised to £50,000

• Retirement age could rise above 70 much earlier than planned

• £100m promised to improve accommodation for armed forces personnel

• 37p extra on price of a packet of 20 cigarettes

OTHER POINTS

• The Office of Budget Responsibility expects UK to avoid recession and is revising growth forecast for this year up to 0.8%.

• Inflation forecast to fall from 2.8% this year to 1.9% next year.

• Unemployment expected to peak at 8.7% this year.

• Borrowing forecast to fall from £126 billion this year - £11 billion less than forecast in Autumn Statement - to £21 billion by 2016/17.

• Cost of operations in Afghanistan to be £2.4 billion less than expected. Extra £100 million to be spent on armed forces accommodation.

• State pension age to be automatically reviewed to ensure it keeps up with growing longevity.

• Consultation to be held on offering gilts - Government bonds - with maturity terms of more than 50 years.

• “Major package of tax changes” to boost oil and gas extraction in North Sea, and £3 billion new field allowance west of Shetland.

• Tax credits for video games, animation and TV production in the UK.

• Funding for faster broadband in UK’s 10 largest cities.

• Legislation for relaxed Sunday trading laws on eight Sundays during Olympics and Paralympics, starting July 22.

• Reform of tax system for small firms and review of VAT.

• Simplification of tax system for pensioners.

• Single-tier state pension to be introduced - estimated to be £140.

• Personal tax statement will explain how taxation is spent.

• Headline rate of corporation tax to be cut further from next month by one percentage point - to 24%. Future cuts to go ahead as planned.

• Bank levy to be increased to 0.105% from next January, raising £2.5 billion a year.

• No change in alcohol duty.

• Duty on all tobacco products to rise by 5% above inflation from 6pm tonight - 37p on a packet of cigarettes.

• New duty on gaming machines.

• Changes to taxation on gambling firms, imposing tax at the place of consumption to discourage online gambling moving offshore.

• Fair fuel stabiliser means above-inflation rises in fuel duty will return only if price of oil falls below £45 a barrel.

• Vehicle excise duty to rise by rate of inflation. Duty frozen for road hauliers.

• Government to consult on anti-tax evasion rules.

• Stamp duty charge on properties above £2 million through a company to rise immediately to 15%.

• Stamp duty rate of 7% on properties worth more than £2 million.

• 50p tax rate raised £1 billion - a third of the amount forecast.

• Top rate to be reduced from 50p to 45p from April 2013.

• Changes to taxation mean the Treasury will receive “five times more money each and every year from the wealthiest in our society”.

• Child benefit to be reduced incrementally when one member of household earns more than £50,000. Child benefit will be removed completely at £60,000.

• Personal tax allowances to rise by £1,100 from next April. Tax-free allowance to rise to £9,205, making 24 million people £220 a year better off.