As the Irish Government continues to pay Social Welfare (Child Benifit) to Irish Millionaires each month, including many corrupt former Fianna Fail Ministers, the British Government have removed such Social Welfare from the Millionaires in Budget 2012, and only those on 60K or less per year will now recieve what has become known in Ireland as 'Waxing Money', as 'beauty' saloons report an 80% increase in the bikini and leg Waxing trade when the Child Benifit is paid each month, in areas such as Castleknock and Blackrock.
Chancellor George Osborne has delivered his third budget speech in the Commons. He is cutting the top 50p tax rate to 45p from April 2013. The personal tax allowance is to rise to £9,205 in April 2013 as Osborne pledges to "take low income earners out of tax altogether".
The chancellor is also introducing a new rate of stamp duty on expensive homes. The corporate tax rate is coming down to 24% in April and to 22% by 2014. Here are all the key announcements:
General remarks
• "This country borrowed its way into trouble. Now we're going to earn our way out."
• "This budget rewards work"
• "This budget reaffirms our unwavering commitment to deal with Britain's record debts."
• We will have a "simpler tax system where our taxpayers understand what they are being asked to pay"
• A tax system where "millions of the lowest paid are lifted out of tax altogether and the tax revenues we get from the wealthiest increase"
• "There will be no deficit funded giveaways today"
Economy
• Impact of the sovereign debt crisis has been "significant"
• Office for Budget Responsibility says UK will avoid technical recession with positive growth in first quarter of 2012
• OBR says economy has "carried a little more momentum into the new year than previously anticipated"
• OBR revises up growth forecast for this year to 0.8% from 0.7% previously
• OBR cuts 2013 growth forecast to 2.0% from previous forecast of 2.1%
• OBR forecasts growth of 2.7% in 2014, 3% in 2015 and again in 2016
• No change to OBR's forecast unemployment rate. In autumn it said rate would peak at 8.7% this year and ease back to 8.6% next year
• But OBR has revised down estimate of the claimant count, see it now peaking at 1.67m this year rather than the 1.8m forecast in November
• Inflation is expected to fall from 2.8% this year to 1.9% next year
• "The OBR are sharply revising down their forecast for euro area growth this year by 0.8% to -0.3%."
• OBR forecast for world economic growth also revised down over the next two years - by 0.2% and 0.3% respectively.
• "No doubt that the high oil price ... is of great concern across the world."
Public finances
• Fiscal forecasts have "improved a little" from November
• Borrowing this year to come in at £126bn, down from November forecast of £127bn
• "In total borrowing is £11bn less than I forecast in the autumn and this will be used to pay down debt"
• OBR has forecast government on course to eliminate structural current deficit by 2016/17
• "Public sector net debt is now set to peak at 76.3% in 2014-15, almost 2% lower than previously forecast – before falling the following year."
Personal taxes
• Personal tax allowance - threshold at which workers start paying income tax - will rise to £9,205 in April 2013, up £1,100 from the £8,105 level this April
• Top 50p tax rate being cut to 45p from April 2013. "No chancellor can justify a tax rate that damages our economy and raises next to nothing."
• Top 50p tax rate has caused "massive distortions", report published today shows. The hike to 50p from 40p "raised just a third of the £3bn we were told it would raise"
• Top 50p tax rate is highest in G20 "it is widely acknowledged" as harming the British economy. Can only be justified if raises "significant sums"
• Clamping down on tax avoidance and evasion which "I view as morally repugnant"
• "My goal is a tax system where the lowest paid are brought out of tax altogether"
• From midnight tonight new 7% stamp duty tax on properties over £2m
• Eradicating anomalies in VAT such as on some foods and drinks
• Will keep exemptions for food, children's clothes, books and newspapers
• Plan to give taxpayers statements showing where their tax goes, such as on healthcare and on interest payments on the national debt
• "A tax system that is simple and transparent"
Business taxes
• Corporation tax being cut to 24% in April, having already cut to 26% from 28%
• Corporation tax will be 22% by 2014
• This is the "biggest sustained reduction in business tax rates for a generation". It is an "advertisement for jobs and investment in Britain"
• Need a simpler tax system which "businesses can easily navigate"
• Will radically change administration of tax for our smallest firms.
• Consulting on simplifying tax for firms with turnover up to £77,000
• Above the line R&D tax credit from next year as demanded by business groups
Benefits
• Partly removing child benefit from households where at least one person earns over £50,000 - softened from previous plans
• Considering proposals to manage future increases in the state pension age, beyond the increases already announced
Government bonds
• Debt management office consulting on issuing longer dated gilts beyond 50 years and case for perpetual gilts
Business
• Expanding enterprise finance guarantee
• Want to double UK exports to £1trn this decade
• Expanding UK Export Finance and setting out new plans to help smaller firms in new markets
• Review on how government can work better with private sector on growing economy to be conducted by Michael Heseltine
• Relaxing Sunday trading laws during Olympics and Paralympics
• Exploring enterprise loans for young people starting businesses
• Offering enhanced capital allowances for businesses starting up in the new Scottish enterprise areas in Dundee, Irvine and Nigg
• New Welsh Enterprise Zone in Deeside
Media and technology
• Want to turn Britain into Europe's technology centre
• Help for video games and premium TV shows with tax break that will attract top companies like Disney and HBO to make premium shows in UK
• "It is the determination of this government that we keep Wallace and Gromit exactly where they are."
• 10 cities to share £100m to fund 100Mbps superfast broadband in areas where private sector will not reach
• Cities are: Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and London.
• £50m will be available for smaller cities too
Infrastructure
• Network Rail will upgrade lines in the north of England
• Need to address lack of airport capacity in south-east "cannot cut ourselves off"
• Want to "look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry."
Cigarettes, alcohol and gambling
• Introducing new gaming machines duty with standard rate of 20%
• Plan to tax online gambling based on location of gambler not company
• Duty on all tobacco products will rise by 5% above inflation, 37p on a packet of cigarettes from 6pm tonight.
Fuel and vehicles
• Do not propose changes to fuel duty plans already set out
• Vehicle excise duty to rise by inflation, but frozen for road hauliers
Energy
• Introducing package of tax changes to ensure get maximum from oil and gas extraction
• Introducing £3bn new oil field allowance to open up fields west of Shetland Islands
• Seeking major savings in the administrative cost of Carbon Reduction Commitment business. "If those cannot be found, I will bring forward proposals this autumn to replace the revenues with an alternative environmental tax."
• Energy Secretary will set out our new gas generation strategy in the autumn to secure investment.
Public sector
• Looking at making public sector pay "more responsive" to where workers are
Armed Forces
• Government spending in Afghanistan will be £2.4bn lower than planned over remainder of parliament
• Extra £100 million of improvements in the accommodation of our armed forces and their families
• Doubling the families welfare grant which is used to provide additional support to the families left behind when people deploy
