The Budget

vivatifosi

Share of national debt falling. Age of irresponsibility left behind. There can be no turning back. New settlement across the political spectrum needed that recognises that unsustainable debt cannot be maintained and in short we should always fix the roof (haven't we heard that one before)~

Path to surplus...

FISCAL CHARTER: Govts will be required to maintain surplus except when GDP falls below 1% growth and will then have to set out why. Put to house in Autumn.

Need to make difficult decisions in fair way.

Richest are paying a greater share of tax than at beginning of last parliament.
We are all in this together.
Since 2010 child poverty and inequality have fallen. Gender pay gap at all time low. Good news.
Fiscal plans require £37bn of further consolidation over parliament. These plans show how that can be achieved.. £17bn this budget. £12bn from welfare and £5bn from tackling avoidance/evasion. Rest will come from cuts to dept. No cuts will be as deep as 11/12 and 12/13.

Whitehall admin costs down 40% but much more we can do.

Continue public sector pay awards with rise of 1% pa for next 4 years.

vivatifosi

Priority is NHS:

Stevens plan will be fully funded.
Requires additional govt funding. In addn to £2bn will receive additional £8bn this year. £10bn extra this year.
You can only have a strong 7 day NHS if you have a strong economy.
NHS is only safe in Conservative hands (yes he did really say that)

vivatifosi

TAX EVASION AND AVOIDANCE:

Have done more to combat this than previous govts. Stopped blatant abuses. £5bn found.

HMRC - 750m investment - triple number of wealthy evaders chased.

Change law to stop uses of losses
Corporates cannot artifically increase (profits?)
Sole employees will no longer be able to claim
Looking at ways round when using personal service company
Naming and shaming serial avoiders
Non-doms - closing loopholes - IHT property and those born here, cannot be permanent any longer. Residence 15 of past 20 years will now pay full uk taxes on worldwide income. £1.5bn raised.

vivatifosi

CORP TAX:

Remove annual deductions for acquired reputational value
Bring forward tax payment dates for large corporations
Banks: new remit to Financial Policy Cttee. Bank levy has worked, but now needs changing. Over next 6 years levy rate will be gradually reduced, and after that will no longer apply to w'wide bal sheet.
Will however change charges on profits to banks.
Cap charges to claims management companies.
Taxing banks and insurers in fair/sustainable way.

Using fines from banks to support service charities.

Recognising that terrorism victims from overseas will fund memorial.
Increasing cadet programmes in schools.

RAF Group Fighter command centre in London will be repaired (Battle of Britain HQ).

vivatifosi

PRODUCTIVITY:

Plan will be set out on Friday.
Key elements:

Transport 4/5th journeys by road but network terrible. Need long terms solution to fix. VED pricing out no longer sustainable... from 2017 for brand new cars there will be new VED bands. 3 duty bands £144pa average. Nobody will pay more in tax for the car that they already own. VED tax will be returned to use for road building to pay for this investment.

MOT Test may be moved from 3-4 years (in consultation)

No changes to fuel duty

SKILLS TO SECURE A BETTER JOB:
16-24 are no better skilled than our 55-64 year olds. Tackling coasting schools, doubling apprentiships, will go to 3m. Need to confront the fact too many companies free ride the system. Introducing an apprentiship levy on all large firms so that they can get back more than they put in by training up the next generation of workers.

UNIVERSITY: Student funding reform... people from low income background applying in record numbers. Removing artificial cap on student numbers so anyone with right grades can go, but can only do so by capping grants. If we don't unis will be underfunded. 16-17 maintenance grants will be replaced by loans that only need to be paid back once over £21k income. Rate also to increase £8.?k

lisyloo

Sole employees will no longer be able to claim

Claim what? sorry can't see the context.

michaels

Has osbourne jumped the Shark? big increases in NHS spending and more new stealth taxes than you could shake a stick at. Will Mr G Brown commend the budget to the house?

Graham_Devon

Seems he's just made it a lot harder for the poorer to attend uni?

vivatifosi

PRODUCTIVITY (Continued):

DEPENDENCE ON LONDON: building up other parts of UK as balance to London. Wales - investment. Scotland - have the powers how are you going to use them.

Reached agreement with G Manchester for greater devolution - fire, land commission, children's services, employent programmes. For directly elected mayor. Will be available for other cities. Sheffield, Leeds etc already being investigated.

£30m to new body for Oyster style ticketing in north.

Midlands also to follow. Investment in SW. Greater say for Cornwall.

Power to counties and mayors to set Sunday Trading laws locally.

lisyloo

Seems he's just made it a lot harder for the poorer to attend uni?

Why? because they might have to pay it bakc when they are earning enough? or did I miss something?