Cuts ... Chancellor George Osborne delivers the emergency budget
You can follow everything the Chancellor said right HERE to see how it affects you:
12.33: Chancellor says budget will "pay for the past and plan for the future". He said £1 in every £4 the UK
12.35: The Budget is tough, but it is also fair, said Mr Osborne. He said the coalition Government had inherited the largest budget deficit of any European economy except Ireland
12.36: He said unless the Government delivers concrete measures to tackle debt, the consequences would be "higher interest rates, more business failures, sharper rises in unemployment and potentially a catastrophic loss of confidence and the end of the recovery".
12.37: Chancellor attempted to stress those poorest would not shoulder the burden, saying: "When we say we're all in this together, we mean it."
12.38: Britain
12.40: Chancellor plans to have the structural deficit in balance by 2015.
12.41: Mr Osborne outlined forecasts from the independent Office of Budget Responsibility. It says growth is expected to be 1.2 per cent this year and then 2.3 per cent next year, 2.8 per cent in 2012 then 2.9 per cent in 2013 and 2.7 per cent in 2014 and 2015.
Consumer Price Inflation is expected to reach 2.7 per cent by the end of the year before returning to the 2 per cent target in the medium term. OBR says unemployment will peak this year at 8.1 per cent, then fall each year to reach 6.1 per cent in 2015
12.44: Chancellor said bulk of savings should come from cuts in spending rather than higher taxes.
12.45: 77 per cent of total consolidation will be achieved through spending cuts.
12.45: He said borrowing would be £149bn this year, £116bn next year, £89bn in 2012/13 and £60bn in 2013/14. By 2015/16 he said borrowing would be reduced to 1.1 per cent of GDP.
12.46: Mr Osborne said Britain
12.47: Mr Osborne said the fact that the state accounts for more than half of national income is "completely unsustainable".
12.49: Extra cuts announced of £30bn a year.
12.50: Chancellor said government will look at selling state-owned air traffic control service NATS and off-loading student loan book.
12.51: Civil list will be frozen at £7.9m.
12.52: Ministry funding will be cut by 25 per cent over four years.
12.53: Whitehall
12.54: Forces operational allowance doubled to £4,800.
12.55: Pay rises for lowest paid civil servants but there will be a two-year public sector pay freeze.
12.56: Chancellor said he could not make efficiencies without looking at welfare state.
12.59: Tax credit payments reduced.
13.00: Sure Start maternity grant will be given for first child only.
13.01: Child benefit frozen for next three years. Means testing of child benefit rejected.
13.03: Housing benefit capped at £280-a-week for a one-bedroom property to £400-a-week for a four-bedroom property or larger. Move will save £1.8bn by the end of the current parliament.
13.05: Total welfare savings will be £11bn.
13.06: Corporation tax reduced by one per cent to 27 per cent. Lower tax rate of 20 per cent for smaller firms.
13.07: New medical assessment for disability living allowance from 2013 for all claimants.
13.08: Point at which firms start paying NI will rise by £21 per week from April next year.
13.09: Bank levy from January 2011. It will generate £2bn a year and apply to UK banks abd buildings societies, as well as foreign banks' UK
13.11: Tax relief for video game industry scrapped.
13.13: Reductions in capital and investment allowances will be delayed to April 2012.
13.13: The Government will create a Regional Growth Fund to provide finance for regional capital projects over the next two years. Anyone setting up a new business outside London
13.14: The Government will publish a White Paper on tackling regional economic differences in Britain later in the summer, followed by a paper on rebalancing the economy of Northern Ireland
13.15: VAT will rise from 17.5 per cent to 20 per cent on January 4 next year. This will generate £13bn a year.
13.16: Govt help to freeze council tax for a year from next April.
13.17: Planned rise in cider duty scrapped. No rise in duty on alcohol, tobacco and fuel.
13.19: The top rate of Capital Gains Tax will rise to 28 per cent from midnight - just as The Sun exclusively revealed this morning. The rise in CGT - which is levied on profit made on a property and assets - is much lower than expected.
It had been reported the Chancellor could put it up from 18 per cent to 40 or 50 per cent. The Lib Dems had campaigned before the election to make it 40 per cent and the full coalition agreement had said CGT would be levied "at rates similar or close to those applied to income".
CGT will remain at 18 per cent for low and middle-income savers. CGT changes will raise an extra £1bn a year.
13.21: Planned landline phone duty scrapped.
13.22: As expected the income tax free threshold was raised to £7,475 - up £1,000 - but not for higher earners. It reflects a key plank of Lib Dem policy and means 880,000 will not now need to pay income tax at all. Some 23 million basic rate taxpayers will gain up to £170 a year.
13.23: Additional support for families living in poverty. Child element of child tax credit raised by £150 above inflation next year.
13.26: Chancellor said it was unfortunate taxes had to rise but added: "We have had to pay the bills of past irresonsibility."
13.28: Chancellor finished delivering the budget
0 comments