Budget 2013: Highlights

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Summary of the highlights of the 2013 Budget from George Osborne.

ECONOMY

Growth forecast for this year cut to 0.6 per cent from 1.2 per cent in December and next year is now expected to grow by 1.8 per cent rather than 2 per cent

Office for Budget Responsibility predicts UK will avoid a triple-dip recession

PUBLIC FINANCES

Borrowing to rise to £114bn in 2012-13 fiscal year, up from earlier forecast of £108bn

Borrowing to rise for next three years to 2015-16, a year longer than forecast

Borrowing as a percentage of gross domestic product to peak in 2016-17, a year later than forecast

UK will need to borrow an additional £61bn over the next six years

MONETARY POLICY

Review of the Bank of England’s remit to see whether it should be expanded to include growth under Mark Carney, the new governor

Exchange of letters between chancellor and governor of the Bank of England to be published alongside minutes from the Monetary Policy Committee in future

PUBLIC SPENDING

Boost for infrastructure spending by £3bn a year from 2015-16 until 2017-18

Public sector worker pay frozen at 1 per cent for another year to 2015-16

HOUSING

Interest-free loans worth 20 per cent of the value of new homes on properties worth up to £600,000

Government to offer guarantees from the start of 2014 for three years on £130bn worth of mortgages

Funding for build-to-rent schemes increased fivefold to £1bn

BUSINESS

Corporation tax cut by 1 percentage point to 20 per cent from 2015

National insurance contribution holiday for business worth up to £2,000

Government procurement from small companies to rise fivefold

Capital gains tax relief for employees wanting to buy their own companies

Stamp duty axed on shares traded on growth markets like Aim

New tax relief for shale gas investment

Exemption to be introduced from climate change levy from April 2014 for energy used in “metallurgical and mineralogical processes”

Bank levy increased to 0.142 per cent from 0.13 per cent from April 2014

PERSONAL FINANCE

From April 2014 personal tax allowance rises to £10,000

50p tax rate on earnings over £150,000 reduced to 45p from next month

Single flat-rate pension of £144 a week brought forward a year to 2016

The capital gains tax holiday is to be extended

Planned fuel tax rise abolished, maintaining freeze for two more years

New tax-free childcare vouchers will offer working families 20 per cent off the first £6,000 of care costs for each child

Introduction of single-tier state pension brought forward to 2016

Duty on a pint of beer cut and scrapped the previously planned above-inflation duty increases on beer

People who bought Equitable Life with profits annuity policy before 1992 to receive £5,000 ex-gratia payment, while those people on pension credit receive extra £5,000

TAX AVOIDANCE

Agreements unveiled with the Isle of Man, Guernsey and Jersey, as well as new rules to stop the abuse of partnership rules, corporate tax losses and offshore employment intermediaries

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