budget 2008

The budget 2008 Britain is well placed to weather economic storms, says Chancellor Alistair Darling as he delivers his first Budget. As the Budget unfolds you can find the latest news direct at credit4everyone.co.uk.   Chancellor Alistair Darling stood up to deliver his Budget at 1230 GMT.  Borrowing next year will rise to £43bn, some 2.9% of national income, Mr Darling said. It will fall to 1.3% by 2012/13.Advertisement

The UK’s GDP per head has gone from the lowest in the G7 in the 1990s to second highest now.

The British economy grew by 3% last year, but will this year grow from 1.75-2.25%, Mr Darling said.

“There will be no return to the inflation rates of the early 1990s,” Mr Darling said.

To provide certainty, the chancellor said he is writing to the governor of the Bank of England to keep a 2% target on inflation.

Mr Darling said the government had taken the necessary action to meet its fiscal rules.

For environmental reasons, fuel duty will rise by 0.5p per litre in real terms. He said he was postponing the 2p increase in fuel duty until October this year.

Borrowing next year will rise to £43bn, some 2.9% of national income, Mr Darling said. It will fall to 1.3% by 2012/13.

“It’s vital that today our fiscal discipline … that we borrow only to invest,” the chancellor said.

He said that by 2011, investment will have increased by 500%, trebling as a share of national income.

Public spending in the coming three years will grow by 2.2% a year.extra £2bn will be spent on troops in the frontline, including £900m on military equipment, whilst also announced that in 2010, all long term term recipients of incapacity benefit will attend work capacity programmes.

Spending in government departments must be matched by reform, Mr Darling said.

The focus for the next decade on the NHS will be creating “world class services”.

Mr Darling said child poverty must be eradicated in Britain.

From October 2009, rules for housing and council tax benefit will mean families on benefit are better off in work. From April, 2009, child benefit will be increased to £20 a week.

Five million customers on pre-paid meters should get a “better deal”. Energy companies should spend £150m on social tariffs.

The government will launch the “savings gateway” nationally with the first accounts available by 2010.

Cash ISA limit confirmed as £3,600 a year from April, Mr Darling said.

Corporation tax will fall from 38% to 28% by April this year, he said.

Mr Darling said there will be simpler taxes for small companies.

Funds available through the small firms loans guarantee will increase by 60% in the next year.

There will be a capital fund of £12.5m to encourage more women entrepreneurs.

Mr Darling said the government welcomed the contribution made by people from outside the UK. But non domiciled families should after seven years pay a “reasonable charge”.

There will be £200m extra for schools to raise GCSE results, the chancellor said. By 2011, every school “will be an improving school”. There will be a £30m fund to improve science.

Mr Darling said there will be £60m over three years for equipping people for the workplace.  

New measures at Heathrow and other airports, using biometric technology, to speed up the time it takes to get through security checks.

Mr Darling said he is setting aside funding for testing proposals for road pricing.

“£26m funding to reduce carbon emsissions in home

“Money raised to go to charity”

“Sites for 70,000 new homes found”

“100% of emission trading allowances to be auctioned”

“More people to have choice of long-term fixed rate mortgages

“£26m funding to reduce carbon emsissions in home”

“New non-domestic buildings to be zero-carbon by 2019?

“Climate change levy to rise with inflation”

“Support the expansion of Heathrow”

The chancellor received a pat on the shoulder from Gordon Brown and cheers from Labour MPs as he sat down at 1321 GMT.

11p on a packet of cigarettes

55p on a bottle of spirits

14p on a bottle of wine

4p on a pint of beer!

Winter Fuel payments up from £200 to £250

Duties on alcohol will go up by 2% above inflation for next four years.

 Darling said laws will be introduced by 2009 to charge for using plastic bags unless supermarkets do it themselves

The chancellor received a pat on the shoulder from Gordon Brown and cheers from Labour MPs as he sat down at 1321 GMT.

That’s the Budget 2008…. Please feel free to add your views.