Budget 2010: The highlights

• Business rate taxes for SMEs reduced for one year starting from October
2010.

• The government is to sign a new tax information exchange agreements with
Belize, Dominica and Grenada as part of an anti avoidance programme expected to
raise half a billion pounds a year until 2012/13.

• Small business are to be given a new credit adjudication service to which
it can complain about being refused loans.

• Royal Bank of Scotland and Lloyds will be lending £94bn in the coming year.
In the last 12 months they have lent £38bn. Half the new sum will go to SMEs

• The time to pay scheme will be extended for the whole of the next
parliament.

• Entrepreneurs are to receive an increased threshold of £2m on which they
will pay just 10% capital gains tax, instead of the main rate of 18%.

• Government’s £4bn range of support for businesses will be brought under one
banner: UK Finance for Growth.

• The public spending deficit will fall to £74bn by 2014-2015, to lower
levels than previously forecast.

• The current deficit was £11bn lower than the suggested £178bn.

• The deficit would decrease to £131bn, in 2011-2012, £110bn by 2012-2013,
£89bn in 2013-2014 and £74bn by 2014-2015.

• Tax relief on plant and machinery doubled to £100,000.

• Government invoice payments to be sped up – 80% paid by five days.

• £20bn in savings lined up from the public sector – before the next spending
review is taken into account.

• “No further announcements” on VAT, income tax or national insurance from
those already made prior to today’s Budget report.

• Stamp duty threshold for first-time buyers has been doubled to £250,000.

• For those buying homes worth more than £1m, stamp duty will rise to 5% from
April next year

• Alcohol duties rise 2% above inflation, but cider will increase by 10%
above inflation

• The chancellor confirms landfill and fuel duty will increase by 2% above
inflation for 2014/2015.

• Inheritance tax threshold frozen for the next four years.

• Public spending will rise by 2.2% next as planned.

• Tax rises worth £19bn planned.

• Tax receipts from VAT have been £3bn higher than expected.

• The mandatory retirement age may be scrapped, while the retirement age may
rise.

• Borrowing for the year has been £167bn – £11bn lower than forecast due to
better business conditions.

• Fuel duty will rise by 1p in April and a further 1p in January this year.

• Growth in gross domestic product will be 1-1.5% in 2010, and 3 to 3.5% in
2011.

• The tax on bankers bonuses raised £2bn, twice as much as expected.

• The Treasury had received a total of £8bn in fees and charges from the
banking sector after bailing out the banking system.

• Unemployment stands at 1.6m, lower than it reached during recessions in the
1980s and 1990s when it peaked at three million.

• The cost of unemployment has been lower than expected and the money saved
will be used to extend the guarantee to young people which means no more than
six months unemployment before receiving state help for those under 24.

• The government will push for an international tax on transactions in
financial services.

• The deficit will be reduced by half over the next four years. Fresh data
reveals the deficit is £167bn, £11bn lower than originally forecast.

• The economy has contracted by 6% during the recession.