Tag Archives: Budget 2012

Budget 2012 – so you don’t have to….

TAX

  • The 50p tax rate will be reduced to 45p in April 2013
  • The point at which people start paying income tax will be raised to £9,205 from April 2013; it is currently £7,475 and will go up to £8,105 in April 2012

CHILD BENEFIT

  • Only those with income over £60,000 to lose all child benefits
  • Will be phased out when someone in a household has an income of more than £50,000. It will fall by 1% for every £100 earned over £50,000

FUEL, CIGARETTE AND ALCOHOL DUTIES

  • Extra 37p on packet of cigarettes from 6pm tonight
  • No change to existing plans on alcohol duty
  • No change to existing plans on fuel duty

PENSIONS

  • A single tier pension, at a minimum of £140, to be introduced
  • Automatic review of state pension age to be introduced

ECONOMIC FORECASTS

  • UK economy is forecast to grow 0.8% in 2012
  • The forecast for 2013 is 2%, for 2014 is 2.7%, and for both 2015 and 2016 is 3%
  • Inflation is forecast to fall to 2.8% in 2012, and to 1.9% in 2013

STAMP DUTY

  • Stamp duty on properties worth over £2 million to increase to 7% from midnight
  • Any such homes bought through companies will pay 15%

JOBS AND EMPLOYMENT

  • Sunday trading laws to be relaxed for eight weekends beginning 22 July
  • Independent Pay Review bodies to look at introducing regional pay for public sector

BUSINESS AND INDUSTRY

  • Corporation tax will be cut to 24% from April 2012, falling to 22% by 2014
  • Tax relief for the video games, animation and high-end television production sectors
  • Government to consider enterprise loans for young people to start their own business

INVESTMENT

  • Extra funding for ultra-fast broadband and wifi in 10 of UK’s largest cities
  • Investment in railways in north-west England to be increased
  • Airport expansion options to be outlined later this summer, including review of south-east airport capacity

BORROWING

  • Government borrowing this year to be £126bn – £1bn less than forecast
  • Forecast to fall to £21bn by 2016-17