2009 budget at a glance
Here we outline the budget at a glance as a result of the Chancellors speech on 22nd April 2009.
We will publish - within our regular magazine - more in depth details of the budget soon.
The complete budget report can be downloaded by clicking here.
Alternatively you can download our own budget guide by clicking here.
Here are the key points of Alistair Darling's 2009 Budget:
CIGARETTES, ALCOHOL AND FUEL
- All alcohol taxes are increase by 2% from midnight (22nd April 2009) - one estimate is that it would put 5p on the average pint of beer
- The tax on all tobacco is to increase up by 2% from 6.00 pm today (22nd April 2009)
- Fuel duty to rise by 2p per litre from September this year; thereafter by 1p per litre above indexation in April for each of the next four years
THE CAR SCRAPPAGE SCHEME
- From next month (May 2009) - and until March 2010 - motorists will be eligible for a £2,000 discount on new cars if they trade in cars older than 10 years
TAXATION
- The income tax rate for those earning more than £150,000 is set to rise to 50% from April 2010
- The tax relief gained on pension contributions is to be reduced for people on earnings that are greater than £150,000 a year from April 2011
THE UK ECONOMY
- The forecast is that the economy is set to shrink 3.5% in 2009
- Growth expected to pick up in 2010 - expanding by 1.25%
- The economy is predicted to grow by 3.5% annually from 2011
- The amount of public borrowing to increase to £175bn this year
- Borrowing levels are set to rise by £173bn, £140bn, £118bn and £97bn in subsequent years
- The rate of consumer price inflation is predicted to fall to 1% by end of year
- Capital investment levels are set to continue at historically high levels until 2012
JOBS AND TRAINING
- The government states their support for the economy to protect 500,000 jobs
- All long-term unemployed under 25 years of age are to be offered a job or training
- £1.7bn additional resources for the Job Centre network
- £250m funding to help people get work experience in growth industries
- Funding was announced in order to create 54,000 new places in sixth form education
HOUSING
- A scheme was announced to guarantee mortgage backed securities to boost lending
- The previous stamp duty holiday for homes up to £175,000 is to be extended to end of year
- An extra £80m for shared equity mortgage schemes is announced
- A £500m boost aimed at kickstarting stalled housing projects - including £100m for local authorities to build energy efficient homes was announced
- £50m is to be allocated to the upgrading of housing for armed forces personnel
GOVERNMENT SAVINGS
- Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if they are closed
- An extra £9bn in efficiency savings is being planned
- Public spending is to be cut from 1.1% next year to 0.7% in 2011-2012
BENEFITS
- Child tax credit is set to rise by £20 by 2010
- Child trust funds for disabled children are set to rise by £100 a year; and £200 a year for severely disabled children
SAVINGS
- The annual limit for tax-free ISA's is set to rise to more than £10,000 for over-50s this current tax year and for everyone else this will be introduced next year
ENVIRONMENT
- Britain commits to cut carbon emissions by 34% by 2020
- An extra £1bn is allocated to help combat climate change by supporting low-carbon industries
- £525m for offshore wind projects is assigned over the next two years
- £435m support for energy efficiency schemes for homes, firms and public buildings is committed
- £405m to encourage low-carbon energy and advanced green manufacturing is allocated
HELP FOR BUSINESS
- Help for loss-making companies extended - they will be able to reclaim for taxes paid in the last three years until November 2010
- Businesses main capital allowance rate is doubled to 40%
- A new £750m strategic investment fund to help emerging technologies and regionally important sectors
PENSIONERS
- Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension
- the winter fuel allowance is to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year
- The basic state pension will be increased by at least 2.5%, regardless of inflation
This page relates to the announcements in the budget of 2009 on 22nd April 2009. Some of the fine detail of the budget speech cannot be fully interpreted until the budget papers are issued in full. Even then some matters are not decided upon until they gain full Royal Assent and are passed in full by parliament. We cannot be held liable or responsible for any omissions or errors that are contained within this page.