Budget 2013: The Key Points You Need To Know

Budget 2013: The Key Points You Need To Know

George Osborne's Budget lasted 54 minutes and contained a raft of measures as well as data about the state of the economy. Here is a handy guide.


:: The independent Office for Budget Responsibility predicts Britain will avoid a second quarter of negative growth and slipping into a triple-dip recession.

:: OBR forecasts put growth for this year at 0.6%, down a massive 50% on its previous forecast of 1.2%.

:: Growth forecasts for the coming years are now: 2014 - 1.8%, 2015 - 2.3%, 2016 - 2.7% and 2017 - 2.8%.

:: The deficit has been cut by a third from 11.2% of GDP in 2009/10 to 7.4% this year. It is forecast to drop to 2.2% by 2017/18.

:: Borrowing forecast to hit £114bn this year instead of £108bn, then £108bn in 2014, £97bn in 2014/15, then £87bn, £61bn and £42bn in the following years.

:: Proportion of national income spent by the state has fallen to 43.6%.

:: Public sector net debt is due to be 75.9% of GDP this year, then 79.2%, 82.6%, 85.1%, 85.6% in following years falling to 84.8% in 2017/18.

:: The Bank of England's Monetary Policy Committee keeps 2% inflation target but has its remit overhauled.


:: Whitehall departmental budgets cut by 1% after £11bn underspend this year.

:: Bigger savings of £11.5bn sought in the spending review for 2015/16, up from £10bn.

:: Public sector pay cap of 1% extended by a year in 2015/16. Military will receive full recommended increase and be exempt from changes to profession pay.

:: New limit on "annually managed expenditure", which includes welfare budget, debt interest and payments to the EU.

:: Deal on the European budget secured by David Cameron saved Britain £3.5bn.

:: Infrastructure plans given and annual £3bn boost from 2015/16 - a total of £15bn over the next decade.

:: Plans to take forward two major carbon capture and storage projects.

:: "Generous" new tax regime to promote early investment in shale gas and tax incentives for the manufacture of ultra low emission vehicles.


:: Corporation tax cut another 1% to 20% in April 2015 and small company and main rates of corporation tax merged at 20p.

:: Corporation tax cut paid by rise in bank levy rate to 0.142% next year.

:: Help for employees with more generous shareholder status, Capital Gains Tax relief for sales of business to workers and doubling tax free loans for commuter season tickets to £10,000.

:: Large new package of measures targeting tax avoidance and evasion to bring in £3bn in unpaid taxes.

:: New Employment Allowance from April 2014 taking off first £2,000 from employer National Insurance bills. Means around 450,000 small businesses will pay no employer NI at all.

:: Rise in personal allowance brought forward to 2014, meaning no income tax will be paid on the first £10,000 of earnings.

:: Extension to the Capital Gains Tax holiday.

:: Tax-free child care vouchers worth £1,200 per child and increased support for families with children on universal credit.


:: New Help-to-Buy scheme for people struggling to build up a deposit to buy a house, worth £130bn in loans.

:: Includes £3.5bn for shared equity loans and Government interest-free loan worth 20% of the value of a new build house.


:: Flat rate pension of £144-a-week brought forward to 2016.

:: Cap on social care introduced in 2017 and set at £72,000. Threshold for means-testing of help raised from £23,000 to £118,000.

:: Help for Equitable Life Policy holders extended to those who bought with-profits annuities before 1992, with payments of £5,000 and extra £5,000 for those on lowest incomes.


:: Planned rise in fuel duty this autumn is cancelled.

:: Planned 3p rise in beer duty tax scrapped and replaced by a 1p cut on a pint of beer.

:: Beer duty escalator axed. Planned rises for other alcohol duties is retained.