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Home > > Emergency Budget 2010: Speech headlines
Emergency Budget 2010: Speech headlines
22 June 2010
The Chancellor has concluded his emergency Budget speech. We are now in the process of updating our Budget Report and putting together a series of news articles.
However, the headline news from the Chancellor's statement is:
Economy and government borrowing and spending
measures to re-balance the economy, based on saving, investment and exports
no reliance on "backward looking" fiscal rules; debt falling as percentage of GDP by 2015/16; eliminating the structural deficit by 2015/2016
growth as predicted by Office for Budget Responsibility is:1.2 per cent this year, 2.3 per cent in 2011, 2.8 per cent in 2012, 2.9 per cent in 2013 and 2.7 per cent in 2014
77 per cent of the reduction in the structural deficit - that part of government borrowing that does not fall when tax revenues climb - to be achieved through spending cuts, 23 per cent through tax increases
OBR predicts borrowing of £149 billion this year, £116 billion next year and £89 billion in 2012-13, £60 billion in 2013/14, £37 billion in 2014/15, falling to £20 billion in 2015/16
borrowing will be 10.1 per cent this year; by 2015-16 it will be 1.1 per cent; by the end of this parliament debt interest payments will be £3 billion a year lower than they would have been
government will not join the euro in this Parliament
no further reductions in capital spending
departmental spending will fall by £17 billion by 2014-15; budgets in non-protected departments will fall by 25 per cent over four years; more details will be announced in the spending review on 20 October
public sector pay will be frozen for two years, but safeguards will be introduced for those workers on less than £21,000
Benefits and pensions
government will accelerate the increase in the state pension age to 66
from next year, with the exception of pensions and pension credits, benefits, tax credits and public service pensions will rise in line with consumer prices rather than retail prices
tax credits will be reduced for families earning more than £40,000
child benefit to be frozen for next three years
from April next year, the state pension will be linked to earnings, not inflation, and will rise by earnings, inflation or 2.5 per cent, whichever is greater
the child element in the tax credit system will rise by £150 above inflation
Taxes
main rate of VAT up from 17.5 per cent to 20 per cent as from 4 January 2011; zero-rated items to remain
no new alcohol or tobacco or fuel duties
council tax freeze for one year as from next April
capital gains tax rate for low and middle income savers stays at 18 per cent, but for top rate taxpayers it rises to 28 per cent as from 22 June; exemption to remain at £10,100, rising by inflation over the years; no tapers or indexation
entrepreneurs' relief of 10 per cent to be extended to £5 million of lifetime gains
the personal income tax allowance has been raised by £1,000 to £7,475, taking some 880,000 people out of the tax system, with 23 million basic income tax payers set to receive a tax cut of £170 a year; those on higher incomes will see their allowance thresholds frozen until 2013; government committed to raising the personal allowance threshold to £10,000
Business
the threshold at which employers start paying national insurance is to rise by £21 a week
firms set up outside London and the south-east of England will not have to pay employers' national insurance contributions on their first ten employees during their first year in business; the exemption is to be limited to a maximum of £5,000 per employee or £50,000 per firm, and can be applied for at any time over the next three years
the headline rate of corporation tax is to be cut by 1 per cent per year for four years from next year, eventually bringing it down to 24 per cent
small companies corporation tax rate to be reduced to 20 per cent next year
a levy is to be charged on banking profits
News - Personal Tax
-
6 September 2010
PAYE errors mean billions in under- and overpaid tax -
6 September 2010
Government confirms launch of NIC holiday scheme -
6 September 2010
Pre-Budget Report to be 'dropped' -
3 September 2010
New pension tax relief plans receive qualified support -
3 September 2010
Employers should update HMRC payroll systems
News - VAT
-
6 September 2010
Pre-Budget Report to be 'dropped' -
2 September 2010
Consumers overestimate VAT hike -
20 August 2010
Quicker if businesses correct their own VAT mistakes -
16 August 2010
Removal of ESC 3.29 for charitable buildings -
13 August 2010
Clarification of VAT rules on buying insurance
News - Business Tax
-
6 September 2010
PAYE errors mean billions in under- and overpaid tax -
6 September 2010
Government confirms launch of NIC holiday scheme -
6 September 2010
Pre-Budget Report to be 'dropped' -
3 September 2010
Employers should update HMRC payroll systems -
1 September 2010
NIC tax holiday set to launch
News - PAYE
-
6 September 2010
PAYE errors mean billions in under- and overpaid tax -
6 September 2010
Government confirms launch of NIC holiday scheme -
6 September 2010
Pre-Budget Report to be 'dropped' -
3 September 2010
New pension tax relief plans receive qualified support -
3 September 2010
Small businesses urged to comply with the law on pay
News - Savings
-
6 September 2010
Pre-Budget Report to be 'dropped' -
3 September 2010
New pension tax relief plans receive qualified support -
31 August 2010
Employers may cut benefits to accommodate auto-enrolment -
26 August 2010
Employers give backing to pension changes -
23 August 2010
State pension age could require 'significant' rise
Financial Crisis - Government Initiatives
-
6 September 2010
Government confirms launch of NIC holiday scheme -
2 September 2010
UK debt needs long-term fiscal reform -
1 September 2010
NIC tax holiday set to launch -
23 August 2010
State pension age could require 'significant' rise -
23 August 2010
Decline in business confidence may dent recovery
Financial Crisis - Personal
-
1 September 2010
Consumer confidence on the up -
23 August 2010
State pension age could require 'significant' rise -
17 August 2010
Savings accounts face ‘obsolescence’ -
13 August 2010
Planned rise in state pension age ‘premature’ -
10 August 2010
Pensions experts question inflation rate changes
Financial Crisis - The Economy
-
2 September 2010
UK debt needs long-term fiscal reform -
1 September 2010
Consumer confidence on the up -
23 August 2010
Decline in business confidence may dent recovery -
20 August 2010
Recovery gains credibility from latest figures -
19 August 2010
Growth prospects remain uncertain, says Bank
Financial Crisis - Banks - Lending & Saving
-
20 August 2010
Small firms still struggling to secure lending -
19 August 2010
Undervalued security could be hitting business lending -
17 August 2010
Savings accounts face ‘obsolescence’ -
12 August 2010
VAT rise likely to fuel inflation -
10 August 2010
Banks set out details on business lending taskforce
Financial Crisis - Effect on Small Business
-
6 September 2010
Government confirms launch of NIC holiday scheme -
2 September 2010
Consumers overestimate VAT hike -
1 September 2010
Consumer confidence on the up -
1 September 2010
NIC tax holiday set to launch -
24 August 2010
Staff parking tax criticised by business group
Spotlight - Credit Crunch
-
6 September 2010
Government confirms launch of NIC holiday scheme -
2 September 2010
UK debt needs long-term fiscal reform -
2 September 2010
Consumers overestimate VAT hike -
1 September 2010
Consumer confidence on the up -
1 September 2010
NIC tax holiday set to launch
Financial Crisis - Savings - Pensions & Investments
-
23 August 2010
State pension age could require 'significant' rise -
17 August 2010
Savings accounts face ‘obsolescence’ -
13 August 2010
Planned rise in state pension age ‘premature’ -
10 August 2010
Pensions experts question inflation rate changes -
29 July 2010
Savers not being told about interest rate changes
Spotlight - Government Announcements
-
6 September 2010
PAYE errors mean billions in under- and overpaid tax -
6 September 2010
Government confirms launch of NIC holiday scheme -
3 September 2010
New pension tax relief plans receive qualified support -
1 September 2010
NIC tax holiday set to launch -
31 August 2010
Employers may cut benefits to accommodate auto-enrolment
-
6 September 2010
Our Latest News
- PAYE errors mean billions in under- and overpaid tax
As many as six million people may have paid incorrect amounts of tax and national insurance through the PAYE system.
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- Government confirms launch of NIC holiday scheme
The government has announced the introduction of its national insurance contribution holiday for start-up firms in certain areas of the UK.
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- Pre-Budget Report to be 'dropped'
The government is likely to axe this year’s pre-Budget Report, according to press reports.
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- New pension tax relief plans receive qualified support
Government plans to simplify pensions tax relief have won qualified backing from the Chartered Institute of Taxation (CIOT).
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- Small businesses urged to comply with the law on pay
Smaller firms are being encouraged to examine their pay systems to make sure they are not breaching the law on equal pay.
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- Employers should update HMRC payroll systems
Employers who use HM Revenue and Customs’ employer CD-ROM with which to manage their payrolls are being advised to update it as soon as possible.
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- UK debt needs long-term fiscal reform
The UK’s debt compared with gross domestic product could almost double from its 2007 levels by 2015, the International Monetary Fund (IMF) has said.
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- Consumers overestimate VAT hike
Consumers believe that the forthcoming VAT increase will add more to shop prices than it actually will, a new study has claimed.
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