Bishop Fleming Budget Newsletter
Our handy PDF summary of all of the key points from the 2009 Budget. Click here to download the newsletter.
Budget Highlights
Chancellor Alistair Darling has unveiled a series of measures aimed at tackling the 'unprecedented economic crisis'. As widely anticipated, growth forecasts for 2009 have been revised down, with the economy expected to shrink by 3.5%; while borrowing forecasts have risen sharply to £175 billion. However, despite the economic gloom, the Chancellor asserted that the economy will recover, forecasting growth of 1.25% next year.
Key announcements include the introduction, from April 2010, of a 50% income tax rate for those earning more than £150,000 a year.
The stamp duty land tax 'holiday' for residential properties valued at £175,000 or less will be extended to the end of 2009.
Measures for businesses include the introduction of a temporary 40% first year allowance and an extension of help for loss-making companies.
The Chancellor allocated £1 billion to tackle climate change, and announced a commitment to cut UK carbon emissions by 34% by 2020.
The introduction of a 'car scrappage' scheme was also confirmed, offering £2,000 to people who trade in cars that are over 10 years old. Meanwhile, fuel duty will rise by 2p a litre from September 2009.
Other measures include an increase in the child element of Child Tax Credit from April 2010; credits towards the basic state pension for grandparents of working age who care for their grandchildren; and a rise in the annual limit for ISAs to £10,200.