This Budget will be about "reforming the nation's economy" says the Chancellor.
Growth:
At end of last year, had hoped that the economy would grow for the next three years, and that unemployment would peak this year. These forecasts, from the independent Office for Budget Responsibility (OBR), remain. But the numbers have changed. The annual forecast for GDP growth in 2011 is now 1.7% (from 2.1% originally forecast). For 2012 - 2.5%; 2013 and 2014 - 2.9%; 2015 - 2.8%.
Consumer prices index (CPI) inflation expected to remain at between 4% and 5% this year, before falling to 2% by 2013. The inflation target remains at 2%.
Borrowing below target at £146bn in 2011, before gradually falling to £29bn by 2015/16.
"Private sector growth must take the place of Government deficit".
Taxes:
Government will consult on the merging of the operation of national insurance and income tax. Purpose is to simplfy taxes, will take a number of years to complete.
Corporation tax will reduce by 2% from April 2011 (1% reduction previously announced) - new rate therefore 26%. Will continue to fall by 1% a year for three years. Will be offset by increase in the bank levy.
All businesses with less than 10 employees and genuine new start-ups exempt from "new domestic legislation".
Chancellor says the 50% tax rate would do lasting damage to our economy if it became permanent. Now isn't the right time to remove it, but it is a temporary measure. The Chancellor will review the revenues from the 50% tax rate.
Also:
£250m commitment to first time buyers to purchase a newly built property (funded from the bank levy). External commentators suggest this will create between 40,000 and 50,000 jobs in the construction sector.
21 new enterprise zones in England will be funded, the first 10 in urban zones. Benefits include up to 100% discount on rates, and free broadband. Location of remainder will be announced in the summer, one of which will be in London.
"Will deal directly with the problem of youth unemployment", says the Chancellor. 100,000 places for youth work experience over the next four years. Funding another 40,000 apprenticeships for young people.
Regular independent reviews of longevity will be used for a "more automatic mechanism" for increasing the state pension age.
Personal tax:
The National Insurance increases announced by the previous government will go ahead. Chancellor refrains from giving the new rates - employee's main rate increases from 11% to 12%; additional rate from 1% to 2%, from April 2011.
Confirms that personal income tax allowance will increase by £1,000 to £7,475. Will increase by another £600 from April 2012 to £8,105.
Mileage allowance rate increases from 40p to 45p per mile. Good news for all drivers - the April 2011 rise in fuel duty deferred until next year. Even more so, there is a 1p reduction in fuel duty from 6pm this evening.
And so the Chancellor sits down. Check back here later today as we go through the detail of the budget report, and present responses from business leaders.
UPDATE
In the detail of the paperwork to accompany the Budget were a number of employment law-related announcements, several of which are part of the Government's plan to reduce employment regulation.
There have been mixed reactions from business leaders to the 2011 Budget. You can read what a selection of them had to say here.
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