A.Darling’s first budget is good news for those who don’t drink, smoke or buy SUVs.
No major changes, but these are some of the main features of the budget.
- Cigarettes up 11p a packet of 20.
- Beer up by 4p a pint, wine 14p a bottle, spirits 55p a bottle.
- Duties on alcohol will go up by 2% above inflation for next four years.
- related: Should tax on alcohol rise?
Cars and Petrol
• From 2009, major reform of the vehicle excise duty. For new cars from 2010, the lowest-polluting cars will pay no road tax in the first year. Higher-polluting cars will pay more.
• Funding set aside for road-pricing proposals. (road pricing in UK)
• 2p increase in fuel duty is postponed for 6 months due to high price of oil
• For environmental reasons, fuel duty will rise by 0.5p per litre in real terms in 2010. This is said to be for green reasons, but, is very small % of price.
Housing
• From April, key workers, such as teachers and nurses, will be able to borrow money from shared equity schemes.
• Stamp duty on shared ownership homes will not be required until people own 80% of their home.
• More people should have the chance to have a long-term fixed mortgage, which a report shows can reduce the risks for first-time buyers and can keep them on the housing ladder. (but, not clear whether people will actually take them out)
• Sites for 70,000 more houses have been identified. (But, when they will be built is another matter)
PENSIONERS
• Winter fuel allowance will go up from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.
BENEFITS
• From October 2009, rules for housing and council tax benefit will mean families on benefit are better off in work.(see poverty trap and how to overcome it)
• From April, 2009, child benefit will be increased to £20 a week.
• From April 2010, all long-term recipients of incapacity benefit will attend work capacity programmes.
BUSINESS
• £60m over three years for equipping people to return to the workplace. (very small amount)
• Corporation tax will fall from 30% to 28% by April this year, with simpler taxes for small companies. (this is after a lot of pressure by business, tax rates vary a lot within EU area.
• More help for small businesses, with capital gains tax remaining at 10%.
• Funds available through the small firms loans guarantee will increase by 60% in the next year.
Full text of Budget at BBC