Highlights from Chancellor of the Exchequer, Gordon Brown's eighth annual Budget statement.
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# UK has been tested by both domestic and global pressures.
# On course to meeting inflation target of 2%.
# House prices moderated to 3%.
# Inflation lower than the US and the EU and on course to meet inflation target this year, next year and the year after.
# 34th continued quarter of growth. Growth this year would be 1.75%. Forecast growth would be 2-2.5% in 2006 and 2.75-3.25% in 2007 and 2008.
# 5th successive year of growth - higher than European Union. Business investment will increase by 3%.
# Exports to increase by 5% this year and next. Overall growth 2-2.5% this year.
# Employment risen by 330,000 to 28.8 million.
# Network of innovation centres supported by a national headquarters in London
# New Deal- training wage for teenagers in eight regions. Pilots extended
# Doubled investment in education
# New planning guidelines to bridge the gap between housebuilding and housing needs. Local Authorities obliged to speed up planning consent.
# Government will set up Real Estate Investment Tusts
# Pilot projects to encourage LAs to bring derelict land back into use
# Share equity plans extended
# Flexible VAT payments for small businesses
# On target with civil service reductions and relocations
# Rise in investment allowances for smaller business of up to 50%
# New Film tax credit worth 16% for large budget films and 20% for small budget films
# Extension of anti-avoidance disclosures
# Record public investment
# Budget deficit would fall from £19 billion last year to £10 billion this year and £4 billion next year, before the books were balanced and there began to be surpluses.
# Debt levels lower than major competitors, borrowing lower than competitors. Net borrowing in 2005/6 34 billion - equivalent to 2.2% of GDP, falling to 1.6% in 2006/7 and 1.4% over the coming years
# Sustainable investment rule met
# £135 million allocated for security and counter terrorism
# Tax credits. From next year will allow annual income changes of up to £25,000.
# NCD
# Enhanced capital allowances for production of biofuels
# Further funding for Carbon Trust
# Winter payment increased to £200 for rest of labour government and £300 for the over 80s. More help for pensioners with insulation and energy saving.
# Petrol and diesel charges frozen for entire year
# Extra £305 million to help with council tax.
# Unclaimed assets in bank accounts will go to help youth and community facilities. New national youth community service to fund gap years for youngsters who could not otherwise afford it
# Creation of national sports foundation.
For more on the Pre-Budget Report see: AccountingWEB
