By Marcus Leach & Max Clarke
Chancellor George Osborne has announced the 2011 Budget, and here are the main measures. For the latest reaction and expert analysis click here
- The Chancellor announces that inflation targets will remain between 4% and 5% this year, with that figure dropping to 2.5% in 2012 and 2% by 2013.
- 43 tax reliefs will be abolished.
- Chancellor confirms that borrowing for this year will be £2.5 billion below target at £146 billion. This figure will carry on falling until it reaches £29 billion by 2015/16.
- Corporation Tax will come down by 2%, not the expected 1%, by April, meaning the Bank Levy will go up to offset the lower Corporation Tax.
- £250 million to help first-time buyers purchase newly built homes, which will come from the profits raised by the bank levy.
- The 50% tax rate: It is a temporary measure and now is not the time to remove it, although the Chancellor has asked how much it is raising.
- There will now be 21 Enterprise Zones, one being in London, instead of the initial 10 that were expected.
- Government to consult on the merging of Income Tax and National Insurance Tax.
- Small business rate relief holiday will be extended by one year to October 2012, at a cost of £370m.
- There will be 40,000 extra apprenticeships that will be funded for young unemployed people.
- Green taxes to increase as a proportion of total tax revenue and an extra £2 billion to the Green Investment Bank, which will start work in 2012, earlier than planned.
- Chancellor wants a 'single-tier' pension, but it will not apply to current pensioners.
- Help for families "who do pay their taxes but who struggle with the daily cost of living" - the council tax freeze and more child tax credit for lower income families, as well as a £250 "pay lift" for public sector workers earning less than £21,000.
- No increase in tax on alcohol, other than those previously put in place by Labour. Duty on tobacco up 2% above inflation.
- 1p reduction per litre on fuel duty, to come into effect as of 6pm tonight, however VAT on fuel will not be reduced.
- Fair Fuel Stabiliser to aid the reduction on fuel duty, to raise an extra £2 billion.
- Personal Tax Allowance to rise to £8105 in April 2012.
- 10% discount on Inheritance Tax for those leaving part of their estate to charity.