2005 Budget Introduction Summary Economy Economic growth forecast stays at 3-3.5 per cent with i nflation at 1.75 per cent this year and 2 per cent next year. Investment by Government to grow by 3 to 3.6 per cent in 2006.
40,000 Civil Service Jobs cuts announced last year are ahead of target saving £2bn. The first 7,800 civil service jobs have been relocated to the regions, and 12,500 posts have been cut.
Long term sick back to work. New rules to encourage incapacitated workers back to work are to follow.
'Gilt' Borrowing: The Government is to "borrow" more money from the people with new 50-year UK bonds to be launched in May. The first £2bn of savings in the civil service recommended by the Gershon review have been made Help for small business on red tape.
Chancellor pledges to will tackle regulatory concerns facing business. Bristol, Birmingham and Nottingham become science cities plus £300m made available for regeneration.
Arts and Sports: £12m provided for the Arts Council over the next 2yrs. New National Sports Foundation to be created in anticipation of winning olympic bid Films Investment Tax Breaks will be changed again.
Booze you lose: The usual rises on beer, wine and cigarettes. 1p extra on beer; 4p on wine; 7p on cigarettes. Tax rates Capital Gains Tax; Airline passenger tax; Insurance premium tax all frozen with annual allowances increasing. Still no deal on Inheritance tax threshhold, only up to £275,00 wef April and £285,000 in 2006 and £300,000 in 2007.
ISA tax breaks extended to 2010. Focus on Schools 8,900 primary schools being improved with additional spending of around by £9.4bn by 2010 plus £1.5bn for colleges. Plus increased payments to head teachers of primary school and secondary schools. There is a new plan to encourage 9 out of 10 children to stay at school up to the age of 17 including 'paying them a wage' to stay at school. Pensioner Help (vote chasing)
A one off £200 council tax refund plus a free bus pass for all in addition to the abolition of NHS charges for over 65s.