UK Election 2015: Key measures from Britain's pre-election budget, Pre-election Budget,UK Election Budget, Key measure of UK election budget
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UK Election 2015: Key measures from Britain's pre-election budget
Osborne delivered his annual budget statement on Wednesday, his final chance to persuade voters his economic plans were working before a national election on May 7. Here are the main details from his speech:
GROWTH
The Office for Budget Responsibility revises up Britain’s economic growth forecast for 2015 to 2.5 percent from an earlier prediction of 2.4 percent. It also revises up expected growth next year to 2.3 percent, where it remains for the following two years, before rising back to 2.4 percent in 2019.
BORROWING
The OBR predicts that debt as a share of GDP will fall from 80.4 percent in 2014-15 to 80.2 percent in 2015-16, marking the first fall a year earlier than it previously expected. Debt is then forecast to continue to fall every year until 2019-20.
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SURPLUS
The budget surplus is now projected to stand at 7 billion pounds in 2019-20, way below the 23 billion-pound surplus the OBR pencilled in late last year.
PERSONAL TAX
Britain will raise the personal tax allowance to 10,800 pounds ($15,831) in the 2016/2017 tax year, Osborne told parliament, up from an increase to 10,600 pounds which starts in April. It will then rise to 11,000 pounds in 2017/2018.
HIGHER RATE TAX
The government will raise the earnings threshold at which people pay the higher rate of income tax to 43,300 pounds by the 2017/18 tax year. Osborne confirmed it will rise to 42,385 pounds this year.
UNEMPLOYMENT
The rate of unemployment in 2015 is now forecast to be 5.3 percent. The Office for National Statistics said earlier on Wednesday that the unemployment rate in the three months to January was stable at 5.7 percent.
BANK STAKES
The government is launching a sale of 13 billion pounds of the mortgage assets it still holds from the bailouts of Northern Rock and of Bradford and Bingley. It will also sell at least a further 9 billion pounds of Lloyds shares in the coming year.
OIL AND GAS TAXES
The government pledges to cut the supplementary tax charge on oil companies to 20 from 30 percent and introduce an allowance aimed at reinvigorating investments that have dropped to new lows.
HELP TO BUY ISA FOR FIRST-TIME HOME BUYERS
Osborne says the government will create a new Help to Buy ISA, or savings plan, to help Britons get on the housing ladder. Under the plan the government will contribute 50 pounds ($73) for every 200 pounds saved towards a deposit on the purchase of a first home, with a maximum government contribution of 3,000 pounds available.
TAX FREE SAVINGS ALLOWANCE
From April next year Britons will not pay tax on the first 1,000 pounds of interest earned on their savings. The tax-free allowance for higher-rate tax payers will be set at 500 pounds. Osborne said this would result in 17 million people not having to pay tax on their savings.
NATIONAL INSURANCE
Osborne says the government will from April abolish National Insurance contributions for employing under 21-year-olds. From next April it will abolish it for those companies employing a young apprentice.
TAXES ON DRINKS
Beer duty is to be cut for a third year in a row, with a penny being taken off a pint. Cider duty will be cut by 2 percent while the duty on Scotch whisky and other spirits will be cut by 2 percent. Wine duty will be frozen.
src:reuters.com