Budget 06: The main points

Chancellor Gordon Brown announced the following in his tenth Budget:

  • Inflation is at 2% chancellor confirms
  • Growth is to be 2-2.5% and 3-3.25% by 2008
  • Interest rates at lowest for 40 years and averaged 5% since 1997
  • New remit for debt management office
  • Official statistics to be under an independent board
  • Public sector pay settlements to average 2.25%
  • Exports to rise by 5-5.25%
  • UK now second only to US on income per head measurement among G7 countries
  • Golden rule met by margin of £16bn
  • Total net investment is £26bn this year – £6bn in schools this year 
  • Debt will be 38% of income over three years
  • Public sector investment to grow from £26bn this year to £63bn in 2010-11
  • Expanding R&D tax credit for small businesses
  • Corporate tax to be ‘internationally competitive’
  •  Enterprise capital funds to be launched
  • Some 2.4 million jobs created since 1997
  • New energy and environment institute to be launched with £1bn backing
  • £20m for enterprise capital fund for environment
  • New labelling system for energy efficiency goods
  • Some 250,000 homes to be helped with insulation
  • Help to make wind turbines for schools and other public buildings
  • Zero rate excise duty for smallest cars, with £40, £120, £125, £195 and £210
    bands so 3 million motorists will pay £100 or less
  • Fuel duty to rise with inflation, but deferred til September 1
  • Child tax credit ‘wipes’ out tax for millions of families and raised by 14%
    over three years
  • Child benefit raised to £17.45 per week from April
  • Child trust funds to receive extra cash when child is seven
  • Corporation tax rate to remain unchanged
  • Freeze duty on whisky and on cider but 4p extra on bottle of wine
  • Raise exemption on stamp duty to £125,000 from £120,000
  • The 2012 Olympics: £200m matched by £100m in sponsorship and £300m from
    National Lottery
  • Annual national competitions in Olympic sports for schoolchildren
  • Some  £34m for new sports foundation
  • New office in Treasury for faith and non-faith charities
  • Tote to be sold off
  • To improve pupil-teacher ratios average investment per pupil to rise – by
    2011 over £1,000 per pupil through £34bn extra investment in schools over 3
  • Free national bus travel for pensioners and disabled people at cost of £250m
  • Increases in cash for headteachers to recruit more teachers

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