Summary
The ‘Budget 2011’ (HC 836) comprises of goals to encourage sustainable growth and deliver fairness by rebalancing the economy.
The document focuses on plans to reform the tax, benefit and pensions system to become the most competitive in G20 with positive effects evenly shared across the country.
Chapter 1 outlines how the measures in the Budget advance the Government's long-term goals.
Chapter 2 provides a brief description of all Budget policy decisions. The decisions have a neutral impact on the public finances, implementing fiscal consolidation as planned. Growth is forecast to be 1.7% in 2011, but the outlook for the public finances is broadly unchanged.
With the largest budget deficit in the UK’s post-war history, establishing a strong and stable economy is essential. Addressing long-term spending pressures will aid this. In an ageing population, the Government will take action to bring forward the rise in State Pension Age (SPA) from 65 to 66 by six years to 2020.
For increased growth, the Government plans to:
- create a certain, predictable and simple tax system;
- make the UK the best place in Europe to start, finance and grow a business;
- encourage investment and exports; and
- produce a more educated and flexible workforce.
To obtain fairness, the Government will:
- raise the personal allowance to £10,000;
- simplify the state pension system to support personal responsibility;
- reform the taxation of non-domiciled individuals;
- encourage charitable giving by reviewing current measures; and
- reduce tax avoidance.
HM Treasury has published a number of documents to support this year’s Budget which further outline plans for reform.
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