Budget 2013: Key facts

Nia Williams

March 20, 2013

We look at the key facts:

• The economy is expected to grow by just 0.6% this year, not 1.2% as expected. Then growth of 1.8% in 2014 and 2.3% in 2015

• The national debt will hit 85% of GDP and will not start falling until 2017-18 (a year later than expected)

• Employment forecast has gone up by 600,000 for 2013. Some 60,000 fewer people are expected to be claiming benefits

• Deficit has fallen from 11.2% of GDP in 2009-10, to a forecast of 7.4% this year. Osborne says that is a fall of a third

• Borrowing forecast to be £108bn next year, then £97bn in 2014-15, then £87bn the following year

• Government on track to meet its borrowing target a year early, he says

• The 2015-16 spending review will require savings of £11.5bn, not £10bn as originally planned

• Total spending for 2015/16 has been set at £745bn

• The 1% cap on public sector pay will be extended for another yea.

• Stamp duty on shares traded on markets such as AIM abolished

• Financial services: Abolish Schedule 19 tax for asset management industry

• Introducing a Tax-free Childcare scheme so that working families can pay for childcare

• New tax relief for investment into social enterprise

• September’s fuel duty rise will be scrapped

• Beer duty cut by 1%

• Personal allowance to be raised to £10,000 by end of Parliament

• First £2000 of employer NI scrapped

Key highlights:

• Considering extensions to Funding for Lending scheme

• The 2% inflation target is being maintained

• A new remit for the Bank of England’s monetary policy committee is being published.

• The MPC will be asked to explain the “trade-offs” it is making when deciding to allow inflation to remain over 2%

• Extra £15bn in infrastructure capital spending over next decade.

• Corporation Tax 21% next year reduced to 20% in April 2015

• Bank Levy to increase to 0.142% to cover drop in Corporation Tax

• Flat rate pension to be introduced in 2016

• £3.5bn committed to Help to Buy – a scheme available for anyone looking to get on or move up the housing ladder

• New mortgage guarantee scheme, available to all owners. ‘dramatically increase LTV’ £130bn of loans from start 2014-17

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