Earlier today, Alistair Darling, the Chancellor of the Exchequer presented his Pre-Budget Report to the UK Westminster parliament. I think he has managed to skillfully combine investment to support economic recovery with measures to reduce the national debt while enhancing social protection for those most vulnerable to the negative effects of the recession. There are also green measures to enhance energy efficiency and reduce our carbon footprint.
I think the following proposals will be of interest to many of my constituents:
- Windfall tax on excessive city bonuses.
- Bingo duty to be cut from 22% to 20% for next year's Budget.
Pensions
- Basic state pension will rise by 2.5% in April, a real-terms increase of nearly 4%.
Business
- Enterprise Finance Guarantee scheme for bank loans to small businesses to be extended for a further 12 months, guaranteeing a further £500m of loans.
- The Time To Pay scheme allowing firms to spread tax payments will be extended for as long as needed.
- Empty property relief threshold to be extended so that 70% of all empty properties will be exempt.
Jobs/unemployment
- Support for mortgage interest payments for the unemployed to be extended for a further six months.
- Minimum number of hours those over 65 need to work to receive Working Tax Credit to be reduced.
- Government to guarantee that anyone in work will always be better off than they were on benefits, with extra cash help from the Government if needed.
Benefits
- Benefits linked to inflation, such as Child Benefit, will rise by 1.5%% in April.
Green
- Government to double its commitment and finance four carbon capture and storage demonstration projects.
- New scrappage scheme to help up to 125,000 homes replace inefficient boilers, and changes to be made to the Climate Change Levy, company car tax and fuel benefit charge.
- From April, people with a home wind turbine or solar panels who send power back to the National Grid to receive an average tax-free payment of £900 a year.
Transport
- Electric cars to be exempted from company car tax for five years, with a 100% first year capital allowance for electric vans.
