Budget 2007 summary
Wage packets
- Basic rate of income tax cut by 2p to 20p from April 2008.
- Lower 10p rate on first £2,150 above personal allowance abolished
- Personal allowance increases to £5,225.
- Top rate of income tax payable from £43,000 from April 2009.
- National Insurance ceiling raised to £43,000 a year from 2009, an increase from £34,840.
- Tax-free savings limit for ISA contributions increased to £7,200 from 2008.
Personal finances
- Tax exemption for capital gains tax will increase to £9,200, or £18,400 for married couples.
- Inheritance tax threshold to increase to £350,000 in 2010.
Families
- Child benefit rising to £20 a week by 2010.
- Up to 50,000 16 to 17-year-olds to receive a training wage to learn skills.
- A 3,500 strong network of Sure Start Children’s Centres by 2010.
- Increasing Child Tax Credit by £150 a year.
- Extension on £40 a week in-work bonus to lone parents. Now payable for first year of work.
Pensioners
- Tax-free allowance for pensioners will increase in three increments to £9,770 in 2011, or £10,000 by 2011.
- Grants of up to £4,000 for pensioners to improve their homes’ energy efficiency.
- Financial assistance scheme increased to £8billion for the 125,000 people affected by collapsed company pension schemes.
- Will restore link between the basic pension and earnings.
Leisure
- Beer up from 1p a pint, cider 1p a litre, wine 5p a bottle and sparkling wine by 7p from Sunday night. Sprits remain frozen.
- Cigarettes up 11p a packet. VAT on nicotine replacement products cut to five per cent.
Motoring
- Fuel duty to rise in line with inflation by 2p a litre from October.
- Road tax on band G vehicles rising to £300 then £400 from April 2008.
- Duty cut on least polluting vehicles cut to £35.
Environment
- Landfill tax to increase by £8 tonne a year from April 2008.
- Stamp duty exemption for all new carbon neutral homes up to £500,000 until 2012.
- £50 million investment to prevent destruction of the rain forest in central Africa.
Business
- Corporation tax falls from 30p to 28p from April 2008.
- Tax on small companies to rise in three increments to 22p in 2009.
Economy
- British economy growing faster than other G7 nation’s.
- Inflation to fall back to target by end of 2007.
- Student loan book sold for £6 billion, contributing to £36 billion in asset sales.
- Additional £400 million for Ministry of Defence for campaigns overseas.
- Further £8 billion investment in NHS in England.
