PBR 09: Highlights from the chancellor’s statement

Time to pay arrangements for businesses extended for “as long as necessary”.
As many as 160,000 companies have taken up this scheme.

Exemption for business rates to be extended into 201-2011 – for properties at
a rateable value below £18,000

Next year’s planned rise in corporation tax for small businesses from 21% to
22% has been shelved

Over-65s will have to work fewer hours to qualify for working tax credit;
over-50s unemployed to be given new training

Bingo duty cut from 22% to 20%

The VAT standard rate is returning to 17.5% on 1 January 2010 as planned.

GDP growth next year will 1 to 1.5%, 3.5% in 2011 and 3.5% in 2012. The third
quarter of 2009 saw GDP shrink 0.3%. 2009 will see the economy reduce by 4.7%.

Inflation to fall back to 1.5% by end 2010

Potential losses from the government’s intervention into banks will fall to
£10bn, from an anticipated £50bn

The budget deficit will be £178bn this year, a little larger than first
thought. Next year the deficit will fall by £2bn to £176bn. 2011 will see it
fall to £140bn, 2012, £117bn and 2013, £96bn.

Up to £160m will be invested in clean energy and low carbon technology. This
will include £90m for green infrastructure projects

A £500m capital growth fund will be set up to aid businesses struggling to
get access to credit.

The UK’s net debt as a percentage of GDP stands at 56%. The figure would rise
next year to 65% before rising to 78% by 2014/2015

Electric cars will be exempt from company car tax for the next five years and
tax allowances will be introduced for electric vans.

Pharma and bio-tech patents profits will be taxed lower, at 10% corporation

Households will be charged an extra 50p per month on their landlines to help
the government fund the expansion of faster broadband across the country.

Up to 10,000 students from low income backgrounds will receive financial
support and helped into internships and businesses

Pension tax relief to be cut for people earning more than £150,000

The individual inheritance tax threshold will be frozen at £325,000, married
couples at £650,000

Current spending growth of 0.8% to hold until 2014-2015

Another clamp down on tax avoidance. Darling will be looking at 100,00
offshore accounts to protect £5bn a year of revenues

£5bn in public spending savings through outsourcing of prisons and reforming
legal aid

A one-off levy on banking bonuses worth more than £25,000 to put £500m back
into the UK’s coffers.

No public spending review before the general election.

£2.5bn to support military operations along with £5m set aside to help
returned soldiers set up businesses.

From 2011, National Insurance contributions will rise by 0.5% for all
employer, employee and self-employed rates but those paid less than £20,000 will
be spared, saving £3bn a year.

Further reading

The chancellor’s speech in full

Related reading