This document contains the following information: HM Treasury Budget 2009: Building Britain’s Future.
Budget 2009 presents updated assessments and forecasts of the economy and public finances and reports on how, in the face of a steep and synchronized global downturn, the Government is delivering a package of targeted support to help households and businesses and implementing a strategy to support a strong and sustainable recovery.
The Budget announces discretionary support for the economy while continuing sustained fiscal consolidation from 2010-11 when the economy is expected to be recovering and able to support a reduction in borrowing.
Measures on employment include the offer of a guaranteed job, training or work placement for all 18-24 year olds who reach 12 months unemployed. Businesses will be supported by an extension of the enhanced loss relief for an additional year and expanding HMRC’s business payment support service, increasing capital allowances for new investment to 40 per cent for one year, and establishing a £750 million Strategic Investment Fund to support advanced industrial projects of strategic importance.
Support for individuals includes an increase in the annual investment limit for ISAs, and an additional winter fuel payment. Homeowners and homebuyers will be supported by a package of measures to build more homes through unlocking sites currently sitting dormant, and an extension of the stamp duty holiday for all houses costing up to £175,000 until the end of the year.
Environmental measures include setting the world’s first carbon budgets and encouragement of energy efficiency and low-carbon growth. Taxation measures include: an additional rate of income tax for income over £150,000; fuel duty will increase by 2 pence per litre in September 2009 with further increase in subsequent years. Value for money savings in the public sector of £5 billion in 2010-11 rising to £9 billion in 2013-14 are also planned.
This paper was laid before Parliament in response to a legislative requirement or as a Return to an Address and was ordered to be printed by the House of Commons.