Budget 2009

[Nottingham Fox]

From BBC

At-a-glance: Budget 2009
Here are the key points of Alistair Darling's 2009 Budget:

CIGARETTES, ALCOHOL AND FUEL

• Alcohol taxes to go up 2% from midnight - putting the price of the average pint up 1p

• Tax on tobacco to go up by 2% from 6pm - equivalent to an extra 7p on a pack of 20 cigarettes

• Fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years

CAR SCRAPPAGE SCHEME

• From next month until March 2010 motorists to get £2,000 discount on new cars if they trade in cars older than 10 years

• The government will provide £1,000 with the industry expected to provide the other half

TAX

• Income tax for those earning more than £150,000 to rise to 50% from April 2010

• Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011


UK ECONOMY

• Economy forecast to shrink 3.5% in 2009

• Growth expected to pick up in 2010, expanding by 1.25%.

• Economy to grow by 3.5% annually from 2011

• Public borrowing to increase to £175bn this year

• Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after

• Consumer price inflation to fall to 1% by end of year.

• Capital investment to continue at historically high levels until 2012

JOBS AND TRAINING

• Government support for economy to protect 500,000 jobs

• All long-term unemployed under 25s to be offered job or training

• £1.7bn additional resources for Job Centre network

• £250m funding to help people get work experience in growth industries

• Funding to create 54,000 new places in sixth form education

HOUSING

• Scheme to guarantee mortgage backed securities to boost lending

• Stamp duty holiday for homes up to £175,000 to be extended to end of year

• Extra £80m for shared equity mortgage scheme

• £500m to kickstart stalled housing projects - including £100m for local authorities to build energy efficient homes

• £50m to upgrade housing for the armed forces

GOVERNMENT SAVINGS

• Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed

• An extra £9bn in efficiency savings is planned

• Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

BENEFITS

• Child tax credit to rise by £20 by 2010

• Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children

SAVINGS

• Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year

ENVIRONMENT

• Britain commits to cut carbon emissions by 34% by 2020

• An extra £1bn to help combat climate change by supporting low-carbon industries

• £525m for offshore wind projects over the next two years

• £435m support for energy efficiency schemes for homes, firms and public buildings

• £405m to encourage low-carbon energy and advanced green manufacturing

HELP FOR BUSINESS

• Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010

• Businesses' main capital allowance rate doubled to 40%

• New £750m strategic investment fund to help emerging technologies and regionally important sectors

PENSIONERS

• Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension

• Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year

• The basic state pension will be increased by at least 2.5%, regardless of inflation

 

[Durham Fox]

Load of old shite.

 

[Darth Vodka]

Income tax for those earning more than £150,000 to rise to 50% from April 2010

that will do feck all

 

[Willlow]

Might get a new car

 

[bocadillo]

Might get a new car

What's the point of getting a new car for a reduction of £2k when you can get an almost new car for a reduction of £5k+?

 

[drew]

We're just about to buy a new van, shame they're not helping businesses with a similar scheme.

 

[bocadillo]

We're just about to buy a new van, shame they're not helping businesses with a similar scheme.

They are helping businesses - they are helping motor manufacturers and they are helping new car retailers; both are businesses.

Part of the idea is to get older cars off the road to reduce pollution - forgetting the fact that you cause more pollution in making a new car than you do in running an old one. And if people can't afford a new car, I can't see two grand helping a lot of them.

Totally pointless.

 

[spionfox]

Someone asked a question on R5L. What is to stop someone buying a banger off eBay for £50 and then using it to get £2K discount?

You would assume that the banger would have to have been owned for a particular qualifying period but knowing this shambles of a Government and its 'back of a fag packet' thinking, perhaps they just haven't thought this through.

 

[bocadillo]

Someone asked a question on R5L. What is to stop someone buying a banger off eBay for £50 and then using it to get £2K discount?

You would assume that the banger would have to have been owned for a particular qualifying period but knowing this shambles of a Government and its 'back of a fag packet' thinking, perhaps they just haven't thought this through.

The person trading it in must have been the registered owner for a period of at least 12 months.

 

[Cate Fox]

I thought the 50% tax was going to kick in at £100k? Am sure I read that on the skynews website...an outrageous amount of tax to pay

 

[Matt_B]

The person trading it in must have been the registered owner for a period of at least 12 months.

I would imagine as well that the 2k is an upper limit and will not exceed the glass(?) price of the car?

 

[Darth Vodka]

I thought the 50% tax was going to kick in at £100k? Am sure I read that on the skynews website...an outrageous amount of tax to pay

try living in France, until recently the top rate was 70%

 

[spionfox]

I thought the 50% tax was going to kick in at £100k? Am sure I read that on the skynews website...an outrageous amount of tax to pay

It's all relative though. I wish I was earning enough to be taxed at 50%.

 

[MKFox]

They are helping businesses - they are helping motor manufacturers and they are helping banks

 

[Boy Genius]

We're just about to buy a new van, shame they're not helping businesses with a similar scheme.

It applies to vans as well.

 

[bocadillo]

I would imagine as well that the 2k is an upper limit and will not exceed the glass(?) price of the car?

The £2,000 discount is across the board. It would hardly be an incentive if you were only going to get the car's true worth.

I understand that the Government will be paying half and it will be up to the 'motor industry' to find the other half.

 

[bocadillo]

try living in France, until recently the top rate was 70%

When I started work the top rate of tax in this country was 98%. You'll not be surprised to hear that I earned somewhat less than the threshold for that rate.

 

[lazzer]

We're just about to buy a new van, shame they're not helping businesses with a similar scheme.

I have a very good Mercedes Sprinter on offer if you're interested. :icon_wink

 

[Darth Vodka]

When I started work the top rate of tax in this country was 98%. You'll not be surprised to hear that I earned somewhat less than the threshold for that rate.

yes i did hear that

the real thing to do is tax non-domiciles

the high earners will find dodges to keep them below the 150k barrier, in general i agree with it, but public spending has got to fall substantially as well

the tories are sure going to inherit a pile of shit

 

[bocadillo]

yes i did hear that

the real thing to do is tax non-domiciles

the high earners will find dodges to keep them below the 150k barrier, in general i agree with it, but public spending has got to fall substantially as well

the tories are sure going to inherit a pile of shit

And the whole world choruses, "What goes around, comes around".

And I think we will always have this kind of situation whilst MPs and Governments are more interested in their own survival rather than the 'greater good'.