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John
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Budget 2012 documents<

Budget document (PDF 707KB)<

Individual chapters<

Budget Report

Annexes

Supplementary documents

The following documents can be found on the HMRC website (opens in a new window)

The Budget Report and supplementary documents are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website.<

John
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Welfare benefit related highlights in Budget 2012<

If current departmental spending is to be maintained, welfare bill will have to be cut by further £10bn by 2016, says Chancellor

21 March, 2012

 

Chancellor George Osborne has this afternoon delivered his Budget 2012 speech.

Welfare benefit related measures outlined by Mr Osborne and in accompanying Treasury documents include -

  • Welfare benefit savings - Mr Osborne said that, even with the passing of the Welfare Reform Act 2012, the welfare budget is 'set to rise to consume one third of all public spending' and that, if the government were to maintain the same rate of reductions in departmental spending as it has in the current spending review, it would need to make further savings in welfare of £10bn by 2016;
  • Child benefit - the government says that, from January 2013, child benefit will be withdrawn through an income tax charge, that will apply to households where someone has an income over £50,000. For households where someone has an income between £50,000 and £60,000 the charge will apply gradually (1 per cent of child benefit for every extra £100 earned over £50,000), and only households where someone has an income in excess of £60,000 a year will cease to be entitled to child benefit (paragraph 1.175);
  • Fraud and error strategy - the government will provide additional funding of up to £325m across the current spending review period for the DWP to implement its strategy for tackling fraud and error in the benefit system (paragraph 1.213);
  • Flat rate pensions - the government will reform the state pension into a single tier contribution based pension (estimated at £140 per week) for future pensioners. The new system will be introduced early in the next parliament and will be set at a level above the standard guarantee pension credit (paragraph 2.10);
  • Pension Age - the government will commit to ensuring the state pension age is increased in future to take into account increases in longevity and will publish proposals at the time of the Office for Budget Responsibilities 2012 fiscal sustainability report (paragraph 2.11); 
  • Council tax rebate for armed forces - the government will double the rate of council tax rebate, from 50 per cent to 100 per cent, for around 9,500 deployed military personnel (paragraph 2.20);
  • Local council tax support schemes - the government will provide £30m to local authorities in England towards the transitional costs to new local support schemes for council tax (paragraph 2.29);
  • Income tax and national insurance contributions reform - the government will consult on integrating the operation of income tax and national insurance contributions after Budget 2012 (paragraph 2.41);
  • Working tax credit working hours rules for carers - the government confirms that, from 2012/2013, a couple where at least one partner is entitled to carer’s allowance may qualify for working tax credit, including the childcare element, where at least one partner works at least 16 hours per week (paragraph 2.95);
  • Tax reliefs and personal independence payment (PIP) - the government will publish draft legislation in autumn 2012 setting out how tax reliefs currently available to disability living allowance (DLA) claimants will apply to claimants of PIP, which will replace DLA for working age claimants from 2013/2014 (paragraph 2.231);
  • Real Time Information - following consultation, a regulation-making power will be introduced to facilitate the provision of information required for the operation of Real Time Information for PAYE (paragraph 2.222);
  • VAT: universal credit consequential changes - the government will amend the rules governing the VAT zero and reduced rates, with effect from April 2013, to ensure claimants of universal credit get the same VAT relief as those who are claiming the benefits that it replaces (paragraph 2.232);
  • Universal credit spending cap - there will be a cap on the additional costs of universal credit of up to £2.5bn a year in the next spending review, in addition to the £2bn that was provided in the current spending review for implementation (paragraph 1.38);
  • Not-for-profit advice sector - the government will make £20m available to the not-for-profit advice sector in 2013/2014, and again in 2014/2015, 'to support the sector as it adapts to changes in the way that it is funded' (paragraph 2.33).
anonymous (not verified)
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The Chancellor of the Exchequer, George Osborne, today announced his Budget which maintains the Government’s strategy to reduce the deficit, announces far-reaching tax reforms, and support for growth and to reward work. It sets out the actions the Government will take in three areas - creating a stable economy, a fairer, more efficient and simpler tax system, and further reforms to support growth.

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A stable economy
In line with the Government’s fiscal strategy to ensure that the public finances are returned to a sustainable path, Budget 2012 sets out:

• A Budget with a neutral impact on the public finances; and

• Clear progress in implementing the Government’s fiscal consolidation plan and reforms to welfare and public services, with borrowing £11 billion lower over the forecast period than predicted at the 2011 Autumn Statement.

A fairer, more efficient and simpler tax system
The Government is committed to creating a more sustainable tax system that is fair and supports growth. This Budget announces wide-ranging reforms that support this goal, with measures including:

• An increase in the personal allowance by a further £1,100 in April 2013 - the largest increase in the personal allowance in both cash and real terms for the last thirty years;

• An additional one per cent reduction in the main rate of corporation tax. The rate will reduce from 26 per cent to 24 per cent in April 2012, then to 23 per cent in April 2013 and to 22 per cent in April 2014;

• A reduction in the top rate of tax from 50 pence to 45 pence in April 2013, where the direct cost is paid for more than five times over by other measures that affect the best-off;

• The introduction of a limit on all uncapped income tax reliefs. For anyone seeking to claim more than £50,000 of relief, a cap will be set at 25 per cent of income (or £50,000, whichever is greater). This will help ensure that those with the highest incomes pay their fair share;

• The correction of certain anomalies in the VAT system that cause very similar products to be taxed very differently. The Government will also close loopholes in the VAT system to prevent avoidance and ensure compliance;

• A crack down on tax avoidance to protect revenues by closing down schemes which avoid stamp duty land tax, corporation tax, inheritance tax and income tax with effect from today; and

• An increase in the tax charged on high value properties by introducing a new Stamp Duty Land Tax rate of 7 per cent for residential properties over £2 million.

Reforms to support growth
The Government has set out its plan to put the UK on a path to sustainable, long-term economic growth. Significant progress has been made in delivering these reforms, but additional measures include:

• Relaxing Sunday Trading laws during the Olympics and Paralympics to allow retailers to make the most of the occasion;

• Developing a National Roads Strategy, as well as exploring new ownership and financing models for the national roads network to drive up efficiency and leverage in private investment;

• Introducing a package of oil and gas measures to secure billions of pounds of additional investment in the UK Continental Shelf;

• Establishing a UK centre for aerodynamics to open in 2012 - 13 and support innovation in aerospace technology;

• Supporting Network Rail to invest a further £130 million in the Northern Hub rail scheme to improve transport links between the northern cities of England; and

• Publishing a strategy for gas generation in the autumn, recognising that gas-fired electricity generation will continue to play a major role in UK energy supplies over the next decade and beyond.

The Budget also announces a reduction of the Special Reserve to reflect the end of UK combat operations in Afghanistan by the end of 2014. This is funding held over and above the Ministry of Defence budget. The cost of operations will continue to be paid on the same basis. At the same time, the Government will reinvest £115 million of the reduction in the Special Reserve provision to improve service accommodation and support military personnel and their families.

Notes for Editors
1. The Budget, containing full details of all measures, and supporting documents can be downloaded from the following link: http://www.hm-treasury.gov.uk/budget2012.htm<

2. Chapter one explains how the measures announced in this Budget advance the Government’s long-term goals. Chapter two provides a brief description of all Budget policy decisions.

3. The Office for Budget Responsibility have published updated forecasts for the economy and the public finances in their Economic and Fiscal Outlook, which can be downloaded from: http://budgetresponsibility.independent.gov.uk/<

4. Other documents published alongside the Budget include:
• Budget 2011 Policy Costings
• The exchequer effect of the 50 per cent additional rate of income tax
• Debt and Reserves Management Report 2012 - 13

5. Some avoidance measures take effect from today, following their announcement in the Budget.

http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=423792&...<

http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=423793&...<

anonymous (not verified)
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Charities call for a ‘fairness panel’ to assess government spending decisions

On 21 May 2012, more than 160 charity leaders wrote to the Chancellor of the Exchequer, calling for  independent scrutiny of government spending decisions to ‘ensure that our most deprived communities and the most vulnerable in society are not disproportionately hit by the significant reductions in public spending that the UK is committed to’.

Click here< for link to letter

http://www.edf.org.uk/blog/?p=18761<

Other related topic:

http://www.edf.org.uk/blog/?p=18774<

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