UK budget for 2011

a.itradings · Mar 23, 2011

Just came out today. Heres a summary:

Discuss your thoughts here please.

Its not bad as a anticipated it to be. A bit disappointed in the 2B investment in green procurement, when maybe some of that money could have gone into saving public sector jobs.

Unemployment is going to be the highest its ever been this year in the UK.

I think decreasing the corporation tax was an excellent move as more enterprises/businesses = more jobs = better for economy.

Fuel duty cut by 1p per litre this year - LOL?? forget the cuts!! just fill up your petrol tanks

Inflation rise in fuel duty delayed until 2012. Fuel duty escalator, which adds 1p to fuel duty on top of inflation each year, to be cancelled for the rest of Parliament

Plans to switch air passenger duty (APD) from passengers to planes dropped. This year's APD rise postponed for one year. Government will seek to impose the tax on private jets

Vehicle Excise Duty increases in line with RPI (5.5pc), and frozen for heavy goods vehicles
SIN TAXES

No new increase on alcohol or tobacco. Pint of beer up 4p, bottle of wine up 15p, bottle of spirits up 54p. 25p on can of "super-strength" lager. Pint of lower strength 2.8pc abv beer to fall by 18p.

Tobacco duty increases by 2pc above inflation. Hand-rolling tobacco up by 67p. Pack of economy cigarettes up 50p, premium cigarettes up 33p. 10p on pack of five small cigars, 17p on pack of pipe tobacco. Tobacco duty regime reformed
PERSONAL TAX

Personal tax allowance rises by Â£630 to Â£8,105 in April 2012 - a real increase of Â£48 a year or Â£126 in cash terms

Consultation on merging National Insurance and Income Tax

Not proposing to increase taxes for pensioners

50p tax rate will be temporary measure - video

Income Tax relief on Enterprise Investment Scheme increases from 20pc to 30pc next month

Charge on non-domiciled taxpayers increases from Â£30,000 for those here for seven years to Â£50,000 for those in the country for 12 years, raising more than Â£200m

Council tax frozen or reduced this year in every English council

Read Head of Personal Finance Ian Cowie's blog on how the tax changes will affect you
HOMEOWNERS

Â£250m fund for first-time buyers under shared equity scheme

Support for Mortgage Interest scheme extended to January 2013, reducing mortgage arrears

GROWTH

As expected, the Chancellor outlined a revised growth forecast amid a grim backdrop of high inflation and public sector borrowing. The Office for Budget Responsibility forecasts growth of:

2011 2.1pc to 1.7pc rise

2012 2.6pc to 2.5pc rise

2013 2.9pc rise

2014 2.9pc rise

2015 2.8pc rise

Inflation expected to remain between 4pc and 5pc this year, before dropping to 2.5pc next year
DEBT

National debt forecast to be 60pc of national income this year before peaking at 71pc and falling to 69pc by the end of the spending review period

Borrowing expected to be Â£146bn this year, Â£3bn under target. Borrowing to fall to Â£122bn next year, then Â£101bn in 2012/13, Â£70bn in 2013/14, Â£46bn in 2014/15 and Â£29bn in 2015/16
BUSINESSES

Corporation Tax cut by 2pc from April - rather than 1pc as previously announced - and will fall by 1pc in each of the next three years to reach 23pc. Bank Levy rate to be adjusted next year to offset the effect of Corporation Tax reduction on banks

Small business rate relief holiday extended by one year to October 2012, at a cost of Â£370m

Entrepreneurs Relief scheme doubles to Â£10m from April 6

Direct tax indexed by Consumer Prices Index (CPI), which excludes mortgage costs, from April 2012

Small companies' research and development tax credit rises to 200pc in April and 225pc in 2012

New 5.75pc rate on overseas financing income coming into the UK
YOUTH UNEMPLOYMENT

100,000 work experience placements over two years, up from 20,000

Funding for up to 50,000 additional apprentices over next four years
EMPLOYMENT AND SKILLS

21 new Enteprise Zones to be set up, with up to 100pc tax discount rates

Funding for new university technical colleges for vocational training: 24 colleges instead of 12 expected

New export credits for manufacturers, a technology and innovation centre and nine new university centres

Â£100m for new science facilities in Cambridge, Norwich, Harwell and Daresbury, funded from Bank Levy
STATE PENSION AGE

State Pension Age to rise to 66 by 2020
GREEN MEASURES

Green Investment Bank created with an additional Â£2bn, to start operation in 2012

UK becomes the first country to introduce a carbon price floor for the power sector

Climate change levy discount on electricity for those signing up to climate change agereements will rise

Public money will cut unusually high water bills in South West England
INFRASTRUCTURE

Investment of Â£200m in regional railways

Central funding of Â£100m to help councils repair potholes
PUBLIC SECTOR

Pay rise of Â£250 for armed forces, prison, NHS, teachers and civil servants earning less than Â£21,000
Click to expand...

i noob killer i · Mar 23, 2011

I like that they have cut petrol prices by 1p as I may be driving tommow if I pass my test. But on a downside they have increased prices on a packet of cigarettes and a pint of beer which is going to hit me hard . But I can see that we will come through this soon.

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UK budget for 2011

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