Other Key Points

Budget Dec 2012 - Other Key Points

• Economy – Growth predicted at lower rates than back in March.  Economy in 2012 shrinking by 0.1% and then growth forecasted by Office for Budget Responsibility at 1.2% in 2013, 2% in 2014, 2.3% 2015, 2.7% in 2016 and 2.8% in 2017.  Government borrowing set to reduce to 6.9% of GDP from 7.9% in 2012 and fall by 1.6% each year until 2018.  In short, a year behind the Chancellor’s original target before the books start to balance.  There will also be increased spending on housing, infrastructure, roads in Cornwall and the A1, broadband, schools and colleges.

• Fuel Duty Increase - The 3p-a-litre increase in fuel duty, originally introduced by Labour Government and planned for January, is cancelled

• Bank levy to be increased to 0.130% in 2013.

• Overseas aid – Britain will cap its overseas aid budget to 0.7% of GDP.

Back to UK Budget December 2012 Summary