BUDGET SPECIAL: 23 March 2011

The Chancellor of the Exchequer presented his Budget to Parliament this afternoon.

The View from the Government

HM Treasury

Key announcements to Parliament by the Chancellor in Budget 2011 included:

• Growth forecast down from 2.1% to 1.7% in 2011;
• Inflation expected to be between 4-5% this year, dropping to 2.5% next year ;
• The military action in Libya is being funded by the Treasury reserve, and not the Ministry of Defence ;
• Borrowing for this year will be £146bn, which is below target;
• Borrowing will fall to £122bn next year, and will continue to fall until it reaches £29bn in 2015/16;
• The Government will consult on merging National Insurance and Income Tax to simplify them - not to increase taxes. The Chancellor said this will make the tax system "fit for the modern age" - but admits this could take years to achieve.
• Corporation Tax cut by 2%, the lowest in the G7. The Chancellor says this will send out a "Britain is open for business" message, and says he will also adjust the bank levy.
• The Chancellor announced that the top 50p tax rate is regarded as a "temporary measure", but now is not the time to remove it.
• The "non-doms" charge is being increased to £50,000 for those who have been in the country 12 years - raising more than £200m.
• Profits from the bank levy will fund a new £250m shared equity scheme for first-time buyers.
• £100m will be added to the science budget.
• £200m extra will be invested in regional railways.
• More money will be put towards repairing "winter potholes" on the roads.
• The small business rate relief holiday is being extended by one year to October 2012, at a cost of £370m.
• 100,000 places in a new work experience scheme will be available in next few years.
• 40,000 extra apprenticeships will be funded for young unemployed people.
• Changes will be made to Gift Aid to encourage giving. Osborne said these changes will be the "most radical reforms to charitable giving" for a lonf time, and it will benefit the Big Society.
• The Chancellor highlighted the council tax freeze and revealed that more child tax credit for lower income families.
• The Chancellor confirmed a rise in the personal tax allowance, and said 1.1m lower paid people have now been taken out of income tax altogether.
• A "fair fuel stabiliser" will be introduced from Thursday (24 March), which will raise an extra £2bn. This money will be used to delay the duty rise until next year. This will be funded by increasing the supplementary charge on North Sea oil and gas production.
• Fuel duty will be cut by 1p a litre from 6pm this evening (23 March).
• 10% discount on inheritance tax for those who leave 10% estate to charity.
• VAT on fuel will not be reduced
• No additional changes to alcohol duty rates
• Tobacco duty rates up by 2% above inflation, duty regime to be reformed
• Long-term aim for £140 a week flat-rate state pension - not to apply to current pensioners

Read the Chancellor’s speech in full Click here

Read the Budget Document Click here

Growth Review Budget 2011 saw the launch of the Government's 'Plan for Growth', which sets out radical reforms in areas that act as barriers to enterprise. Click here

Action being taken in your area The Treasury's interactive map shows the action the Government has taken in your area to support families and businesses. Click here

Budget 2010 in graphics The Treasury has compiled some charts and graphs which explain some of the key economic measurements in this year's budget. Click here

HM Revenue & Customs

Main announcements affecting HMRC customers

Individuals - Personal Tax, Tax Credits, Child Benefit, National Insurance Contributions
Businesses - Large Corporations, Small & Medium Sized Enterprises, Partnerships, Self-employed
Enforcement and Compliance
Tax and Duties - Rates, Thresholds, Limits
Pensions, Savings, Trusts, Charities, and Income Tax
Employers, Payroll, and Pension Providers
Excise Duties, Stamp Taxes and Environmental Taxes
VAT

The View from the Media

News From The Newspapers

The Guardian
"George Osborne vows to 'put fuel into the tank of the British economy"

More from The Guardian's Budget 2011 coverage.

The Telegraph
"Osborne cuts fuel duty to help 'hard-pressed families"

More from The Telegraph's Budget 2011 coverage

The Independent
"Osborne springs fuel surprise"

More from The Independent's Budget 2011 coverage

The Daily Mail
"First-time buyers to get interest free loans for deposits as Osborne announces income tax and NI could be merged."

More from the Daily Mail's Budget 2011 coverage


Accountancy News Round-up

The View from the Big Four

Budget 2011: Better than expected for non-doms, says KPMG

Instant reactions regarding the 2011 Budget
www.pwc.co.uk

Ernst & Young's commentary and analysis
www.ey.com

Deloitte's coverage and analysis of the Budget 2011
www.deloitte.com

The View from the Politicians

A selection of Ed Miliband quotes during his immediate response to the Budget -

On the UK's growth rate falling:
"The wrong choice to go too far too fast".

"The wrong type of Chancellor in the wrong type of government".

"Same old taxes, same old Tories."

On describing George Osborne:
"Another comparison springs to mind - the same hubris and arrogance of the early 1990s, the same broken promises, the same view that unemployment is a price worth paying. He is Norman Lamont with an iPod."

"It's more of the same from a complacement, arrogant government."

Labour Party reaction to Budget 2011:
"A Budget for growth that downgrades the growth forecast"
Read more here.

Further views from Labour regarding the Budget: http://www.labour.org.uk/budget2011

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