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Chancellor unveils 2009 Budget

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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Law-Making Explained

This is a House of Commons Paper (HC 407, 2008-09). It is the 2009 Economic and Fiscal Strategy Report and Financial Statement and Budget Report from HM Treasury.

Find out more about House of Commons Papers.

How does it affect me?

If you are interested in the Government's plans for economic recovery, this affects you.

Further Reading

Find out more about HM Treasury

Read the Conservative reaction to the 2009 Budget


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