Overview of March 21st Budget

The Government's economic objective is to build a strong economy and a fair society, where there is opportunity and security for all. Budget 2007 sets out how the Government is working to achieve this goal, building on a platform of stability and sustained growth to ensure the UK can continue to succeed in the increasingly competitive global economy. Budget announcements include:

An updated economic forecast, which shows that the UK economy is stable and growing, and that the Government is meeting its strict fiscal rules for sound public finances over the economic cycle;

The next stage in the Government's reforms to simplify the tax system, to provide help for pensioners, support families and make work pay, including removing the 10 pence starting rate of tax and cutting the basic rate of income tax from 22 pence to 20 pence from April 2008;

Further support for families, with the child element of the Child Tax Credit increasing by £150 per annum, over and above the commitment to increase it in line with earnings to the end of this Parliament;

Major reforms to the corporate tax system, reducing the headline corporation tax rate from 30 per cent

to 28 per cent from April 2008;

Investment in education and skills in the UK to rise to £90 billion by 2010-11;

The restriction of tax relief available on empty commercial properties, to encourage the supply of office, retail and industrial premises;

Further reforms to modernise the tax system; and an increase in the tax rate for small companies to tackle individuals artificially incorporating to minimise tax; and

Measures to protect the environment and to tackle climate change including an increase in fuel duty rates from 1 October 2007; and increasing Vehicle Excise Duty to encourage the purchase of less polluting vehicles.

For more information on Budget 2007 visit the HM-Treasury website
http://www.hm-treasury.gov.uk/