Summary
'Budget 2009: Building Britain's Future' presents updated assessments and forecasts of the economy and public finances.
It reports on how, in the face of a steep and synchronized global downturn, the Government is delivering a package of targeted support to help households and businesses and implementing a strategy to support a strong and sustainable recovery.
The Budget announces discretionary support for the economy while continuing sustained fiscal consolidation from 2010-11, when the economy is expected to be recovering and able to support a reduction in borrowing.
Measures announced include:
- Measures on employment include the offer of a guaranteed job, training, or work placement for all 18-24 year olds who reach 12 months unemployed.
- Businesses will be supported by:
- an extension of the enhanced loss relief for an additional year and expanding HM Revenue and Custom's business payment support service;
- increasing capital allowances for new investment to 40% for one year; and
- establishing a £750 million Strategic Investment Fund to support advanced industrial projects of strategic importance.
- Support for individuals includes:
- an increase in the annual investment limit for Individual Savings Accounts (ISAs); and
- an additional winter fuel payment.
- Homeowners and homebuyers will be supported by:
- a package of measures to build more homes through unlocking sites currently sitting dormant; and
- an extension of the stamp duty holiday for all houses costing up to £175,000 until the end of the year.
- Environmental measures include:
- setting the world's first carbon budgets; and
- the encouragement of energy efficiency and low-carbon growth.
- Taxation measures include:
- an additional rate of income tax for income over £150,000; and
- fuel duty will increase by 2 pence per-litre in September 2009 with further increase in subsequent years.
- Value for money savings in the public sector of £5 billion in 2010-11 rising to £9 billion in 2013-14 are also planned.
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