Budget 2007 Coverage – The Chancellor’s Speech Live

Chancellor of the Exchequer, Gordon Brown, stood up at 12.30pm to reveal his tax and spending plans for the next year, in what is likely to be his last budget presentation. Key points of Iron Gordon’s eleventh budget are as follows…

Inflation will fall to 2% this year. In 2008 and 2009 inflation will also be on target.

Investment grown by 6%, business by 7%. Britain has G7’s fastest growing business investment.

In past year, employment risen – 220,000 more men and women in work. 2.6 million more people in work.

Growth forecast: 2.5%-3% in 2008.

Chancellor will meet ‘Golden Rule’ with surplus of £11 billion.

Britain’s net borrowing is 2.7%.

Borrowing forecast – £35 billion in 2006/07, £34 billion 07/08, £30 billion 08/09.

Total expenditures – £552 billion this year, rising to £587 billion next year.

Total public spending to rise to £674 billion by 2010/11, above forecast.

Extra £400 million to pay for military operations in Iraq and Afghanistan.

Spending plans for the NHS to be announced later this year.

£1.3 billion extra for science investment over next four years.

Overall cut in business tax relief.

Cut mainstream corporation tax from 30p to 28p, cut from April 2008.

New Northern Ireland innovation fund to be announced.

Climate change/carbon emissions high on agenda. £50 billion to combat rainforest destruction in Africa.

Grants worth up to £4,000 for pensioners for central heating and insulation.

Extension of fuel duty discount for biofuels.

Fuel duty rises 2p/L. Defer annual fuel duty increase to October.

From midnight tonight, beer to rise 1p/pint, wine 5p/bottle, sparkling wine up 7p. Duty on spirits frozen. Cigarettes up 11p in line with inflation.

£1 billion a year to increase value of working tax credit.

Capital gains tax allowances doubled for married couples, inheritance tax threshold to rise to £350,000 by 2010.

Raise child benefit to £20 per week by 2010.

Tax allowance for pensioners to rise to £9,770 by 2011.

Top rate income tax threshold to rise to £43,000 from April 2009

More to be invested in schools and education. £64 billion next year rising to £74 billion in 2010.

From next April, basic rate of income tax will be cut from 22p to 20p,

“This is a budget for Britain’s families, for fairness and for the future,” said the Chancellor.