Financial Statement and Budget Report

The Budget 2015 sets out a package of measures for a national recovery by investing in infrastructure, housing, science and innovation across the whole of the UK and building a Northern Powerhouse. When the parliament began, unemployment was 8% and the budget deficit was over 10% of GDP, the largest deficit in post-war history. One pound in every four the government spent was being borrowed. The UK had the fastest growth among G7 economies in 2014, but the deficit remains too high and...
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The Budget 2015 sets out a package of measures for a national recovery by investing in infrastructure, housing, science and innovation across the whole of the UK and building a Northern Powerhouse. When the parliament began, unemployment was 8% and the budget deficit was over 10% of GDP, the largest deficit in post-war history. One pound in every four the government spent was being borrowed. The UK had the fastest growth among G7 economies in 2014, but the deficit remains too high and productivity too low, there are still long-standing structural weaknesses in the economy, and the gap between the economic performance of London and the rest of the UK remains too wide. GDP grew by 2.6% in 2014. Borrowing is forecast to be lower in every year to 2018-19 with the public finance forecast to achieve a larger surplus. Fuel duty will be frozen for another year with the government reducing oil and gas taxes to improve competitiveness in the North Sea. A comprehensive review of Business Rates has been launched and there will be a radical simplification of the tax system by abolishing the annual tax return. There will be further substantial increases to the personal allowance to £11,000 in 2017-18. Savings will be supported by a new free Personal Savings Allowance and the Help to Buy: ISA. The Budget also invests in mental health services for children. The Government announces plans to sell a further £9 billion of the taxpayer's remaining shareholding in Lloyds Banking Group and launch a major sale of £13 billion assets held in Northern Rock & Bradford & Bingley. From April 2015, Corporation Tax will be cut to 20%. There will be support for long-term investment in the UK's digital communications infrastructure. Also a strengthening of support for postgraduate research and apprenticeships. The government intends to take firmer action to tackle tax evasion and avoidance by introducing tougher sanctions, and lifetime allowance for pensions tax relief will be restricted to £1 million from April 2016.