The Chancellor rose at 3:30pm.
Inflation forecast to be 2.5% this year, next and the year after.
The growth estimate for 1999 of 1% to 1.5% will grow to up to 2.75% in 2000 and between 2.75% and 3.25% in 2001.
Current surplus forecast for 1999 is £2 billion.
Public sector borrowing surplus is £1 billion.
In the next five years, surpluses are expected to be £2 billion (2000), £4 billion (2001), £8 billion (2002), £9 billion (2003) and £11 billion (2004).
Public sector borrowing forecast as £3 billion for 1999/2000.
Net tax cuts of over £4 billion pounds targeting working families.
Business taxes cut. From 1 April Corporation Tax will fall from 31% to 30%.
A new starting rate of Corporation Tax for small businesses (£50,000 profits or less) of 10p in the pound announced. Encouragement for small and medium-sized businesses.
Tax allowance for new films made in Britain to be extended.
Tax cuts for key personnel moving into high-risk business.
Capital Gains Tax threshold up to £7,100.
Inheritance Tax threshold increased by £8,000 to £231,000.
Small Business Service set up to help new small companies starting out.
New employee share ownership scheme – shares for all.
New computer learning strategy for Britain, to equip for the ‘information age’. £1.7 billion to help schools and colleges buy computers.
Employers to contribute to tax free Individual Learning Accounts.
Existing vocational tax relief to be phased out.
Employers’ National Insurance contributions cut by 0.5% to 11.7%.
Petrol up 4p per litre. Diesel up 6p per litre.
Married Couples’ Allowance replaced by Children’s Tax Credit. Typical family will be £200 per year better off. Pensioners will retain Married Couples’ Allowance.
Child benefit will not be taxed and will rise annually with inflation. It will rise to £15 per week for the first child, and £10 for each further child from April 2000.
All mothers will be entitled to 18 weeks of maternity pay.
Winter allowance for the elderly up from £80 to £100. Personal allowance for pensioners increased to £5,720.
Cigarettes up by 17.5p per packet of 20.
Duty on spirits, beer and wine frozen.
Insurance Premium tax up by 1p from 1 July.
Stamp Duty up by 0.5% for homes over £250,000.
Government to contribute £30 for every £100 donated to charities.
National insurance contributions threshold raised to £87 for 2001. Upper limit on National Insurance raised to £575 per week.
The 10p Rate of income tax will start this April, applying to the first £1,500 of income.
MIRAS withdrawn from April 2000.
Working families Tax Credit increased to £200 per week.
£170 million allocated for crime prevention.
£2000 allocated to every school for new books.
£20 billion extra for hospital building initiative; £1 billion investment in new hospital technology.
£0.5 billion extra for the NHS.
Basic Rate of Income Tax cut by 1p to 22p in the pound from April 2000.
The Chancellor sat down at 4:35pm.
