Todays budget at a glance

 

Welfare and pensions

  • Working age benefits to ne frozen for four years, including tax credits and local housing allowance
  • Rents in social housing sector will be reduced by 1% a year for the next four years
  • Higher-income households in social housing will be required to pay rents at the market rate
  • Tax credits and Universal Credit to be restricted to two children, affecting those born after April 2017
  • Reduce earnings level for tax credits withdrawal from £6,420 to £3,850.
  • Disability benefits will not be taxed or means-tested
  • 18-21-year-olds will not be entitled to claim housing benefit automatically, with a new “earn to learn” obligation
  • Employment and Support Allowance payments for claimants deemed able to work to be “aligned” with Jobseeker’s Allowance for new claimants
  • pensions tax allowance to be tapered away to a minimum of £10,000 from next year
  • Dividend tax credit to be replaced with a tax free allowance of £5,000 of dividend income for all taxpayers. The rates of dividend tax will be set at 7.5%, 32.5% and 38.1%

 

Fuel

  • New VED bands for new cars to be introduced from 2017, pegged to emissions – 95% of car owners will pay £140 a year.
  • Fuel duties frozen for the remainder of this year

 

Personal Taxation

  • Personal tax allowance to rise to £11,000 next year
  • The point at which people start paying income tax at 40p to rise from £42,385 to £43,000 next year
  • National living wage to be £9 per hour by 2020 for people 25 and over, starting from £7.20 per hour from next April
  • Increase in inheritance tax threshold to £1m for married couples by 2017

 

Business

  • Corporation tax cut to 19% in 2017 and 18% by 2020
  • New apprenticeship levy on all large firms- firms that offer apprenticeships can get more back than they put in

 

Health and education

  • NHS will receive a further £8bn by 2020 (in addition to the £2bn already announced)
  • Maintenance grants for students paid to students with family income below £42,000 to be scrapped and converted into loans from 2016/17, repayable on incomes over £21,000
  • The maintenance loan will increase to £8,200

 

Housing

  • Mortgage interest relief for buy-to-let homebuyers to be restricted to basic rate of income tax
  • Rent-a-room relief scheme to rise to £7,500

 

Other

  • The cost of funding free TV licences for the over-75s will be transferred from the government to the BBC between 2018 and 2021
  • The annual household benefit cap will be reduced to £23,000 in London and to a lower level in the rest of Britain.
  • A consultation will take place on changing Sunday trading laws
 

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