Key Points from Yesterdays Budget
Forecast growth of 2.75 per cent and 3.25 per cent for 2000, and 2.5 per
cent to 2.75 per cent for 2001;
Debt interest payments will be £4 billion lower;
Current surplus forecast at £17 billion;
Public sector surplus forecast at £12 billion;
Current surplus for 2000-01 at £14 billion, current surplus for 2001-02
at £16 billion;
2.5 per cent real growth in public spending for the next three years.
Capital gains tax cut to 35 per cent from 40 per cent from April 2000, to 30
per cent after two years, to 20 per cent after three years, and 10 per cent
after four years;
Investments in unlisted companies of more than four years will enjoy a 10
per cent rate of CGT;
Inheritance tax threshold increased to £234,000 from £231,000;
Unapproved share schemes can be offered to up to 15 employees at
Employees' share ownership will benefit from the 10 per cent capital gains
Abolition of withholding tax on interest on international bonds from April
40 per cent capital allowance tax for small and medium business to be made
Stamp duty to increase to 3 per cent on properties above £250,000 and 4
per cent on properties above £500,000.
£100 tax cut for electronic filing of VAT and tax returns;
100 per cent tax relief for small businesses investing in technology.
£1 billion investment for regional venture capitalist funds;
ISA ceiling at £7,000 for one more year.
Starting April 2001 New Deal extended to long-term adult unemployed.
All long-term unemployed over 50 who want to return to work will be
guaranteed a benefit of £60 a week up to £15,000 annual earnings;
Extension of working families tax credit;
Extension of New Deal to 500,000 lone parents of children over the age of
five from April 2001;
Child benefit will rise to £15.50 from April 2001, with an extra
£4.35 for the poorest families.
Relief extended to gift of shares to charities;
Companies to receive full tax relief for charitable donations;
Set up local and regional children funds to support local voluntary sectors.
Old age pensioners earning less than £100 a week and pensioner couples
earning less than £150 a week will receive a new pensioners' credit.
Pensioners allowance for over 65s of £6,050;
Income support for pensioners extended to those with savings of £6,000
Winter fuel allowance for pensioners extended to £150 from £100;
Pension rise will be more than £2 for individuals and £3 for
Minimum guaranteed income for pensioners raised to £82 a week and
£127 for married couples.
Petrol to rise 2p per litre;
Car tax discs frozen until March 2001;
Tax discs reduced for large lorries;
Air passenger duty in Europe cut to £5 from £10;
Cigarettes to rise by 25p a packet with funds ring-fenced for NHS;
Duty frozen on spirits; wine to rise by 4p per bottle, beer up 1p per pint;
Increase in education spending of £1 billion from April 2000.
Release of additional resources of £4 billion for public services, with
£280 million for transport and £285 million for fighting crime;
£1 billion increase in education spending from April 2000;
Children's tax credit increased to £442 from £416;
There will be £300 million extra new investment paid directly to
Altogether, there will be an extra £1 billion for education.
There will be £3,000 to £9,000 for primary schools with over 200
children and £30,000 to £50,000 for secondary schools with more than
Real term rise in education spending will be 8 per cent from April 2001;
NHS funding will increase by 6.1 per cent above inflation from 2000-04;
Plans to recruit a further 10,000 nurses.