“We will do whatever it takes to protect Britain from this debt storm” in Europe.
Office for Budget Responsibility does not predict a recession in UK.
OBR forecast: GDP growth estimated at 0.9% in 2011. 0.7% in 2012 (down from 2.5%).
Borrowing falling but not as fast as forecast.
OBR sees additional borrowing of £5bn in 2011/12, £20bn in 2012/13 and £30bn in 2013/14.
Public sector pay awards set at average of 1% increase after the pay freeze ends next Spring.
NHS and schools budgets protected.
Deal on public sector pensions is “fair”.
Basic state pension to rise by £5.30 next April. Pension credit also uprated by £5.30.
In 2026 – state pension age will rise to 67.
Benefits uprated by 5.2% next April.
Credit Easing to help small business – ceiling of £40bn. National Loan Guarantee Scheme to use country’s record low interest rate to ease interest rates charged to firms who borrow from banks.
Country’s low rate to benefit families too through mortgage indemnities. Will reinvigorate “right to buy” to also help construction sector.
Bank Levy rate to rise from January 1st.
National Infrastructure Plan to get Britain building to improve roads, bridges, rail, schools etc. It will be paid for through”British savings for British jobs.” £20bn to come from pension schemes.
£5bn of additional Government spending on infrastructure plan – 90% of homes will have access tosuper-fast broadband.
Regional Growth Fund for England to get extra £1bn.
£0.5bn for science projects.
Health & Safety red tape to be cut further for small firms.
Corporate tax rate to fall to 25%.
Business rates holiday extended until April 2013.
8.7% unemployment rate forecast for next year by OBR.
New Youth Contract to offer work experience and assistance getting into private sector to help ease youth unemployment.
Extra £1.2bn to schools with 100 extra ‘free schools’. Maths Free schools to help UK’s science industry.
Free nursery places for 40% of the country’s 2-year olds (260,000)
Planned 3p per litre fuel duty increase in January is cancelled. August’s planned increase to be reduced.
Rail fares capped at 1% higher than CPI inflation