The Budget 2013

The Budget 2013, George Osbornes’ key points of the budget for 2013

Fuel, Alchohol & Cigarettes

  • September’s 3p fuel duty rise scrapped
  • April’s 3p rise in beer duty scrapped. Instead, beer duty to be cut by 1p
  • Annual inflation +2% rise in beer duty to be ended but “duty escalator” to remain in place for wine, cider and spirits

Income Tax

  • Limit at which people start paying tax to be raised to £10,000 in 2014 – a year earlier than planned

Housing

  • Shared equity schemes extended, with interest-free loans up to 20% of value of new-build properties
  • Bank guarantees to underpin £130bn of new mortgage lending for three years from 2014

Economy

  • Forecast growth of 0.6% in 2013, downgraded from 1.2% in December but the Office for Budget Responsibility predicts UK will escape recession this year
  • Growth predicted to be 1.8% in 2014; 2.3% in 2015; 2.7% in 2016 and 2.8% in 2017

Borrowing

  • Borrowing of £114bn this year, up from previous £108bn forecast
  • Borrowing set to fall to £108bn, £97bn and £87bn, £61bn and £42bn in subsequent years
  • Borrowing as share of GDP to fall from 7.4% in 2013-14 to 5% in 2015-16
  • Debt as a share of GDP to increase from 75.9% in 2012-13 to 85.6% in 2016-17

Jobs

  • 600,000 more jobs expected this year than at same time last year
  • Claimant count to fall by 60,000

Inflation

  • 2% Bank of England target to stay in place
  • Bank remit to be changed to focus on growth as well as inflation

Spending & Pay

  • Most government departments to see budgets cut by 1% in each of next two years
  • Schools and NHS will be protected
  • £11.5bn in further cuts earmarked in 2015-16 Spending Review
  • 1% cap on public sector pay extended to 2015-16 and limits on “progression” pay rises in the sector
  • Military to be exempt from “progression” pay limits.
  • Proceeds of Libor banking fines to be given to good military causes, including Combat Stress charity

Transport & Infrastructure

  • £3bn extra for new projects every year from 2015-16 until 2020, total of £15bn

Help for business

  • Corporation tax to be cut by 1% to 20% in 2015
  • New employment allowance to cut national insurance bills cut by £2,000 for every firm
  • 450,000 small firms will pay no employer National Insurance
  • Government procurement from small firms to rise fivefold
  • Tax relief for investment in social enterprises
  • Stamp duty axed on shares traded on growth markets like Aim
  • Tax avoidance and evasion measures, including agreements with Isle of Man, Guernsey and Jersey, aimed at recouping £3bn in unpaid taxes

Energy & the Environment

  • Tax incentives for ultra low-emission cars
  • Pottery industry in Midlands to be exempt from climate change levy
  • Tax allowances for investment in shale gas

Pensioners

  • Single flat-rate pension of £144 a week brought forward a year to 2016
  • Cap on social care costs confirmed

Families

  • 20% tax relief on childcare up to £6,000 per child from 2015
  • £5,000 payments for those who lost money on Equitable Life policies bought before 1992. Extra money for those on low incomes

 

Source BBC.co.uk

March 20, 2013