----------------- -----------------  |  | | Last Updated: Tuesday, 9 October 2007, 16:05 GMT 17:05 UK |
Main points: Darling statement | | The main points from Chancellor Alistair Darling's pre-Budget report and Comprehensive Spending Review statement: TAXES The inheritance tax threshold for married couples and those in civil partnerships will rise to �600,000 from today and �700,000 by 2010. The main rate of corporation tax will be cut by 2p in the pound to 28% by next year. | READ THE REPORT
Most computers will open this document automatically, but you may need Adobe Reader |
Mr Darling promised to reform the capital gains tax system, ensuring those working in private equity pay a "fairer share". There will be a single rate of 18%. A number of "loopholes" for non-domiciled tax payers will be examined, Mr Darling said. Tory plans to charge a flat rate of �25,000 to such people would mean only 15,000 paying, he added. This would mean revenue of �650m a year, rather than �3.5bn that the Tories had estimated, Mr Darling said. Grants to local authorities for local services in England will increase to �26bn by 2010 to ensure local authorities can keep council tax rises substantially below 5%, Mr Darling said. HEALTH Over the next three years the NHS will increase its funding by an average of 4% above the rate of inflation. Investment in health in England to rise from �90bn this year to �110bn by 2010. Mr Darling said the single fund for health research would be expanded to �1.7bn by 2010. EDUCATION AND SCIENCE The education and skills budget will rise to �74bn by 2010. An additional �2bn will be invested in 2010 in health and education, Mr Darling said, including a �250m fund to ensure all children at school are ready to learn and benefit from personalised support. Investment on science and technology to rise to �6bn in three years' time. HOUSING The government will spend more than �4bn over the next three years to help people in poor-quality housing make renovations. Proposals are to be brought forward in the Budget to help lenders provide more fixed-rate mortgages for 10 years or even longer. THE ECONOMY Mr Darling said it was a time of "increased economic uncertainty" with "turbulence in America, Asia and Europe" . There would be "no risks with unaffordable promises that put the public finances at risk". UK economic growth is expected to be between 2% and 2.5% next year, the chancellor said. And for 2009/2010 the figure would be 2.5% to 3%, he added. Mr Darling said he expected to make a statement on Northern Rock later this week. PUBLIC FINANCES The government will keep net debt at a sustainable level during the next economic cycle, Mr Darling said. Net borrowing was forecast to fall from �38bn this year to �23bn in 2012. Government departments will save a further �30bn by 2010, on top of �20bn of savings already achieved, the chancellor said. DEFENCE/TERROR/CRIME Mr Darling allocated an extra �400m for military operations abroad this year. He announced a new single budget for the police, security services and other agencies to deal with terrorism, to rise by �1bn a year to �3.5bn in three years' time. Extra spending on the Home Office and Ministry of Justice is to rise to �20bn by 2010, Mr Darling said. ENVIRONMENT, TRANSPORT AND OVERSEAS AID Mr Darling said aviation duty would be paid on flights, rather than individual passengers. An extra �200m will be given for free pensioner bus travel next year, he added. By 2010, the transport budget will rise to �14.5bn a year, including projects to widen some motorways. The Department for the Environment, Food and Rural Affairs budget will rise to �4bn in three years' time, including �800m by 2010 for flood defences. The overseas aid budget will rise to �9bn by 2010. BENEFITS AND PENSIONS The amount of child maintenance a family can receive without it affecting their benefits will double from �20 a week to �40 a week by 2010. Pension credits will rise �5 a week from next April for single people and �7.65 for couples. CULTURE There would be an inflation increase for arts and culture spending, Mr Darling said. The budget for the Department for Culture, Media and Sport will rise to �2.2bn in three years. By 2010, there will be �460m spent on the British Council, the BBC World Service and the launch of BBC Farsi and Arabic TV channels.
| | RELATED INTERNET LINKS The BBC is not responsible for the content of external internet sites
| |
|
Home
BBC NEWS CHANNEL
News services
E-mail this to a friend 
Printable version 
UK Economy 10 Years On 
Tax changes 
Bookmark with:
What are these?