George Osborne has delivered his sixth Budget, and the last of the current Parliament. The key points are as follows:
Economy
The UK grew 2.6% in 2014, faster than any other advanced economy but lower than 3% predicted in December
2.5% growth is forecast in 2015, up from 2.4% predicted in December, followed by 2.3%, 2.3%, 2.3% and 2.4% in the next four years
There is record employment in the UK, with the jobless rate to fall to 5.3% this year
Trade deficit figures are "the best for 15 years"
Living standards are "higher" than in May 2010, according to OBR data, with households better off by an average of £900 in last five years
Inflation is projected to fall to 0.2% in 2015
Public borrowing/deficit/spending
Deficit has been halved since 2010 as a share of national income
Borrowing is set to fall from £97.5b in 2013-14 to £90.2b in 2014-15, £75.3b in 2015-6, £39.4b in 2016-7, £12.8b in 2017-8 before reaching a £5.2b surplus in 2018-9
Debt as a share of GDP to fall from 80.4% in 2014 to 80.2% in 2015-16 before falling in every year, reaching 71.6% in 2019-20
Additional £30b savings are needed in next Parliament
Squeeze on public spending to end a year earlier than planned in 2019-2020, with spending in 2019-2020 to grow in line with the growth of the economy
Welfare bills set to be an average of £3b lower each year than predicted in December, and interest charges on government gilts £35b lower
Personal taxation
The tax-free personal allowance to rise from £10,600 in 2014-5 to £10,800 in 2015-6 and £11,000 in 2016-7
The threshold at which people start paying 40p income tax to rise by above inflation from £42,385 in 2014-5 to £43,300 in 2017-8
Annual paper tax returns to be abolished
Business
Tax on "diverted profits" to come into effect next month, aimed at multinational firms moving profits "artificially offshore"
Annual bank levy to rise to 0.21%, raising an extra £900m. Banks to be barred from deducting compensation for mis-selling from corporation tax
Review of business rates
Housing/infrastructure/transport/regions
New powers for Mayor of London over skills and planning
Greater Manchester councils to be allowed to keep 100% of growth in business rates
New inter-city rail franchise for south west of England
Responding to today's Budget, John Cridland, CBI director-general, says: “Stability and consistency are what businesses need to grow and prosper. This Budget sets the tone, providing a clear plan for fiscal health and growth. This Budget has some encouraging measures to help businesses create jobs for the benefit of all.
“The brighter fiscal picture has allowed the Chancellor to recalibrate his deficit reduction plans. In the next Parliament this fiscal breathing space should be used to achieve intelligent reductions in public spending, together with much-needed infrastructure and innovation.
"With business investment a crucial driver of growth, the Chancellor has signalled his intention to continue the Annual Investment Allowance. We want it to be made permanent in the Autumn Statement at £250,000 - this will fire the UK's economic kiln by spurring smaller firms to invest in plant and machinery.
“The reduction of the headline rate of Corporation Tax to 20% next month, is a meaningful step in making the UK the most competitive tax regime in the G20 and will help to attract investment.
“The oil and gas industry, which supports 450,000 UK jobs and is a major contributor to GDP, has been given a much-needed boost with the reduction to the supplementary charge and other incentives. This will help address concerns over job losses and investment freezes, but pressures remain due to low oil prices.
“Giving savers greater freedom over their pensions, including creating a secondary annuities market, boosts choice but after a period of flux what's needed now is breathing space for the industry and consumers to get to grips with all the changes.”
