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Read the AccountingWEB.co.uk summary of the key points of chancellor Alistair Darling's 2009 budget....
- The UK economy is forecasted to shrink by 3.5% in 2009. The growth forecast for 2010 is 1.25%, and from 2011 onwards it’s 3.5% a year
- Inflation will reach 1% by the end of the year. The retail price index will drop by -3.5%
- Public sector net borrowing is expected to hit £175bn this year (12.4% of GDP), and then £173bn, £140bn, £118bn and £97bn in the years that follow
- UK net debt stands at 59%, rising to 68% next year and increasing again to 79% by 2013/14
- Income tax will not go up this year for most, however those earning more than £150,000 will see an increase from 45% to 50% from April 2010
- Fuel duty will be upped by 2% from September, and 1% above indexation every year for the next four years.
- Alcohol and tobacco duties will be increased by 2%
- Stamp duty holiday on homes under £175,000 will be extended until end of 2009
- A new car scrapping scheme will offer a £2,000 discount on new cars when vehicles over ten years old are traded in
- The child element of the Child Tax Credit will increase by £20 from April next year
- Parents will receive £100 extra in child trust fund vouchers for new babies, taking them to £350
- State redundancy pay is to rise from £350 to £380 a week
- Grandparents’ care for young relatives will count towards basic state pension
- Last year's increase in winter fuel allowance to be extended for another year
- Annual ISA limit to be increased from £7,200 to £10,200, half of which can be invested in cash. From this year for over-50s, from next year for others
- Loss-making companies can reclaim tax paid on profits made in past three years
- Additional £1.7bn funding for jobseekers
- From January 2010 everyone aged under 25 unemployed for a year to get offer of job placement or training
- £260m new money for training and subsidies
- £250m extra this year to enable 16- to 17-year-olds to stay in education. £400m in next two years
- Pension tax relief restricted for those on incomes over £150,000 from April 2011. It will be gradually tapered to the same 20% rate received by most people
- £500m extra support for housing industry
- £100m for local authorities to build energy-efficient housing
- £50m to accelerate modernisation of housing for military families
- Main capital allowance rate doubled to 40% to encourage firms to bring forward investment
- £750m investment fund to provide financial support to emerging technologies
- Carbon budget commits UK to reduce emissions by 34% by 2020
- £435m extra support for energy efficiency measures for homes, businesses and public places
- £525m new support for offshore wind power projects. Will provide enough electricity for 3.5m households
- £405m new funding for low-carbon technology projects
- Most energy-efficient new power stations using combined heat and power to be exempt from climate change levy
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