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Brown’s 11th Budget: Prosperity for Families

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Summary

The Budget sets out the Government's plans for taxation, public spending and economic growth for the coming year.

‘Budget 2007, Building Britain's Long-term Future: Prosperity and Fairness for Families’ (HC 342) focuses on providing support for pensioners and families, increasing employment opportunities and protecting the environment.

For more information on individual measures, see ‘How does it affect me?’ below.

Budget 2007 is accompanied by an ancillary report 'The Lyons Inquiry into Local Government' , an independent review commissioned by HM Treasury. The Lyons Inquiry examines local government funding and recommends Council Tax reforms.

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Law-Making Explained

This is a House of Commons Paper (HC 342): it is a Report from the Treasury.

Find out more about House of Commons Papers.

How does it affect me?

Measures announced in the Budget 2007 include:

  • Basic rate of income tax to be reduced from 22 pence to 20 pence from 2008
  • Working Tax Credit threshold to be increased by £1200 to £6420 in 2008
  • Higher personal allowances for those aged 65 or over to be raised by £1180 in 2008
  • Child Tax Credit to be increased by £150 per year by 2008
  • Child Benefit for the eldest child to be raised from £17.45 to £20 a week by 2010
  • Increase of 11 pence per pack on cigarettes; increase of 1 pence a pint on beer and 5 pence a bottle on wine. Duty on spirits will be frozen.
  • Increase of 2 pence per litre in fuel duty rates from 1 October 2007
  • Changes to Vehicle Excise Duty for the next three years, with rates for the most polluting cars rising to £400 and for clean cars falling to £35
  • Inheritance tax threshold to rise from £285,000 to £350,000 in 2010
  • Corporation tax to be cut from 30p to 28p from April next year
  • Tax rate on small companies to rise from 20p to 22p by 2009
  • Investment in the National Health Service to rise by £8bn.

Find out more about the 2007 Comprehensive Spending Review.

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