Budget 2011: key points
The key points from George Osborne's March 2011 Budget speech.
- Personal tax allowance to rise by £630 to £8,105 in April 2012 - a real increase of £48 a year, or £126 in cash terms.
- 50% tax rate to be a temporary measure.
- Consultation on long-term plan to merge income tax and National Insurance
- Corporation tax to be cut by 2% from April and 1% in each of the following three years
- Charge on non-domiciled taxpayers to increase from £30,000 for those here for seven years to £50,000 for those in the country for 12 year
- Rate relief holiday for small businesses extended to October 2012
- From April 2012, people leaving 10% or more of their estate to charity will enjoy 10% reduction in inheritance tax, benefiting charities by £300m
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- Pay rise of £250 for armed forces, prison, NHS, teachers and civil servants earning under £21,000.
- Hutton recommendations on public sector pensions accepted. Single-tier flat-rate state pension to be created, expected to be about £140-a-week.
- Planned air passenger duty rise will be delayed for a year
- Fuel duty cut by 1p a litre from 6pm today (23 March 2011) and 1p per litre petrol planned rise in duty delayed for a year
- Funding for 24 new university technical colleges for vocational training (up from 12)
- 100,00 work experience placements over two years. 10,000 more apprenticeships totalling 250,000 apprenticeships over next four years
- £350m worth of regulation on businesses will be removed.
- Relief for entrepreneur tax to be doubled to £10m.
- Entrepreneurs relief scheme to be doubled to £10m from 6 April 2011.
- Small business rate relief holiday extended by one year to October 2012 at a cost of £370m.
- 21 new enterprise zones to be funded, including in Manchester, Birmingham and London. Ten others to be named in the summer.
- Income tax relief on enterprise investment scheme to increase from 20% to 30%.
- Small companies' research and development tax credit will rise to 200% in April and 225% in 2012.
- Government to invest £200m in regional railways.
- £100m fund towards helping councils repair potholes.
How does it affect you? Share your reaction to the 2011 Budget with other Mumsnetters on our Politics Talk board.
Last updated: over 2 years ago