Budget 2008 _ Key Points

Budget 2008 - Quick Guide Summary

The Economy

• Global financial markets turbulence that started in the US as spread across the world is a threat to both UK and World economies
• Chancellor expects UK economy will continue to grow between 1.75% and 2.25% this year, down from 3% last year
• He suggests that the Bank of England will control inflation rates within the 2% target
  
• Public sector borrowing will rise to £43bn.  It will then fall to 1.3% by 2012/13
• Public spending will grow by 2.2% a year for the next three years
  

Smoking and Drinking

• Cigarettes up 11p a packet of 20, five cigars up 4p
  
• Beer up by 4p a pint
• Wine 14p a bottle
• Spirits 55p a bottle
• Cider 3p a litre by Sunday.  
  
• Taxes on alcohol will increase by 2% above inflation for next four years

Cars and Fuel

• Zero road tax for a year on new low pollution cars from 2010
• Higher road taxes for higher polluting cars
• 2p fuel price increase starting in October
  

Property

• Key worker scheme to assist teachers, nurses buy property with new share equity mortgages
  
• Stamp duty on shared ownership homes will not be required until people own 80% of their home.  
  
• Affordable housing scheme sites identified with for 70,000 more low cost houses
  

Benefits and Pensioners

• Winter fuel allowance up from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.  
  
• Child benefit increasing to £20 per week in 2009
• People on long term incapacity benefits will be required to attend back to work capacity program
• Council tax and housing benefits being adjusted to remove anomolies where people are better off not working

• ISA limit increases with effect April to £7,200.  Cash ISA limit up to £3,600 already known

• Corporation tax overall rate cut to to 28% with effect 01 April 2008
• £12.5m development fund to encourage more women entrepreneurs
• £60m fund over three years for return to work training
  

Going Green

• Plastic Bags 'Tax' Law to be introduced for shops to charge for bags
  
• UK target for fuel emissions cuts to 80% by 2050
  

Schools

• £30m fund to improve science teaching
• £200m extra for schools to improve CGSE results
  

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