The Budget at a glance

 

Chancellor George Osborne delivered his 2012 Budget statement today. Here are its major points:

ECONOMY

:* The Office of Budget Responsibility expects UK to avoid recession and is revising growth forecast for this year up to 0.8%.

* Inflation forecast to fall from 2.8% this year to 1.9% next year.

* Unemployment expected to peak at 8.7% this year.

* Borrowing forecast to fall from £126 billion this year - £11 billion less than forecast in Autumn Statement - to £21 billion by 2016/17.

* Cost of operations in Afghanistan to be £2.4 billion less than expected. Extra £100 million to be spent on armed forces accommodation.

* Consultation to be held on offering gilts - Government bonds - with maturity terms of more than 50 years.

PENSIONS

* State pension age to be automatically reviewed to ensure it keeps up with growing longevity.

* Simplification of tax system for pensioners.

* Single-tier state pension to be introduced - estimated to be £140.

BUSINESS

* "Major package of tax changes" to boost oil and gas extraction in North Sea, and £3 billion new field allowance west of Shetland.

* Tax credits for video games, animation and TV production in the UK.

* Funding for faster broadband in UK's 10 largest cities.

* Headline rate of corporation tax to be cut further from next month by one percentage point - to 24%. Future cuts to go ahead as planned.

* Bank levy to be increased to 0.105% from next January, raising £2.5 billion a year.

* Legislation for relaxed Sunday trading laws on eight Sundays during Olympics and Paralympics, starting July 22.

DUTY

* No change in alcohol duty.

* Duty on all tobacco products to rise by 5% above inflation from 6pm tonight - 37p on a packet of cigarettes.

* New duty on gaming machines.

* Changes to taxation on gambling firms, imposing tax at the place of consumption to discourage online gambling moving offshore.

* Stamp duty charge on properties above £2 million through a company to rise immediately to 15%.

* Stamp duty rate of 7% on properties worth more than £2 million.

TRANSPORT

* Fair fuel stabiliser means above-inflation rises in fuel duty will return only if price of oil falls below £45 a barrel.

* Vehicle excise duty to rise by rate of inflation. Duty frozen for road hauliers.

TAX

* Government to consult on anti-tax evasion rules.

* 50p tax rate raised £1 billion - a third of the amount forecast.

* Top rate to be reduced from 50p to 45p from April 2013.

* Changes to taxation mean the Treasury will receive "five times more money each and every year from the wealthiest in our society".

* Personal tax allowances to rise by £1,100 from next April. Tax-free allowance to rise to £9,205, making 24 million people £220 a year better off.

* Personal tax statement will explain how taxation is spent.

* Reform of tax system for small firms and review of VAT.

BENEFITS

* Child benefit to be reduced incrementally when one member of household earns more than £50,000. Child benefit will be removed completely at £60,000.

Government accused of 'stealth tax' on pensioners
Corporation tax cut to 24% in April
Unions criticise regional pay rates plan
Thousands escape child benefit axe
TV tax credit 'could end exodus' of big-budget shows
Smokers slam tobacco duty rise
Job fears over increase in beer tax increase
Plane passengers hit by air passenger duty hike
Anger over George Osborne's North Sea bid
Videogame industry celebrates tax relief in Budget
University research gets £100m boost
Ed Miliband condemns top rate tax cut
Estate agents warn that stamp duty raid could hit all homeowners
Government accused of producing a Budget 'for the rich'
George Osborne slashes 50% top tax rate
Osborne dashes fuel price hopes
Oliver Wright on the Budget: Now we have to look at what was NOT said
James Moore: Budget snap judgements
The Budget at a glance
Full text of the Budget speech

PA

Start your day with The Independent, sign up for daily news emails
News
news
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
Arts and Entertainment
tvChristmas special reviewed
Arts and Entertainment
Wolf (Nathan McMullen), Ian (Dan Starky), The Doctor (Peter Capaldi), Clara (Jenna Coleman), Santa Claus (Nick Frost) in the Doctor Who Christmas Special (BBC/Photographer: David Venni)
tvOur review of the Doctor Who Christmas Special
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
i100
Arts and Entertainment
Jenna Coleman as Clara Oswald in the Doctor Who Christmas special
tvForget the rumours that Clara Oswald would be quitting the Tardis
Arts and Entertainment
Japanese artist Megumi Igarashi showing a small mascot shaped like a vagina
art
Life and Style
fashion
Arts and Entertainment
Left to right: Stanley Tucci, Sophie Grabol and Christopher Eccleston in ‘Fortitude’
tvSo Sky Atlantic arrived in Iceland to film their new and supposedly snow-bound series 'Fortitude'...
Arts and Entertainment
tv
News
The Queen delivers her Christmas message
newsTwitter reacts to Her Majesty's Christmas Message
Sport
sport
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Senior Marketing Executive- City of London, Old Street

£40000 - £43000 per annum + benefits: Ashdown Group: Senior Marketing Executiv...

Ashdown Group: Marketing Manager

£40000 - £43000 per annum + benefits: Ashdown Group: An international organisa...

Ashdown Group: Internal Recruiter -Rugby, Warwickshire

£25000 - £30000 per annum: Ashdown Group: Internal Recruiter -Rugby, Warwicksh...

Ashdown Group: Marketing Manager/Marketing Controller (Financial Services)

£70000 - £75000 per annum + benefits: Ashdown Group: Marketing Manager/Marketi...

Day In a Page

A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all