So George Osbourne will tomorrow announce his “painful” emergency budget, do you think that the con/lib coalition is taking a massive gamble with the economy and do you think we face a double dip recession?
The uk emergency budget
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Home Page > News and Society > Politics > The uk emergency budget
The uk emergency budget
Posted: Jun 24, 2010 |Comments: 0
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On Tuesday 22nd June The Chancellor of the Exchequer George Osborne has delivered his emergency budget. Here are the key points on tax rises, spending cuts the economy and changes to benefits.
VAT to rise from 17.5% to 20% on January 4th 2011. http://www.thisismoney.co.uk/vat-rise-calculator
77% of savings to come from spendings cuts, 23% in tax rises.
Government departments face 25% cuts over next five years.
A two year pay freeze for public sector workers earning more than £21k.
Child benefit frozen for the next three years.
Disability benefit claimants face new medical checks.
No new increases on alcohol, tobacco and fuel.
Capital gained tax rate hiked up to 28% for top rate tax payers, £10,100 threshold remains.
Corporation tax cut from 28% to 24% over next four years.
A Bank levy from 2011, raising £2bn per year.
Civil list frozen at £7.9 million.
Income tax threshold raised to £7.495.
Pension link to earnings restored from next April or 2.5% rise.
Britain will not join Euro in this parliament.
Personnel income tax allowance to increase by £1000 to £7,495
Council tax to be frozen this year.
Operational budget for armed services to double to £4,800.
Proposed Broadband tax tax has been scrapped. Instead the Government will support private broadband investment with funding in part from the digital switchover under-spend within the TV licence fee.
Q: So by how much does this budget help reduce the uk deficit?
A: £40bn.
This is how much George Osborne expects to cut from the budget deficit by the 2014-15 tax year.
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