Budget 2016: Key Points
Sugar levy on soft drinks
Sugar tax to be added to soft drinks with more than 5g of sugar per 100g. this aims to raise £520m to fund sport and longer school days.
Tax allowance- tax allowance to be increased to 11,500 by April next year, and then to increase further to £12,500 by 2020.
Savings- Tax relief on financial advice. “Help to save” for lower income savers. From April an increase in the Isa limit to £20,000. A new lifetime Isa for £4,000 of savings.
Fuel duty- Frozen for the sixth consecutive year, saving £75 for the average driver.
Oil and gas- The industry gets £1bn of tax cuts as the supplementary charge on oil and gas is cut from 20% to 10%.
Climate change- An increase in the climate change levy from 2019, An end to the carbon reduction commitment energy efficiency scheme, £730m to back renewables.
Inflation target- The remit remains at 2% for the monetary policy committee and the Bank of England is asked to be particularly vigilant in the face of market turbulence.
Cuts- The chancellor is aiming for a further £3.5bn of savings in 2019-20.
Corporation tax- Cut to 17% by April 2020. But banks are to be hit by restrictions on the amount of profit that they can offset against losses.
Business rates- The threshold for small business rate relief is to increase from £6,000 to £15,000. From April next year 600,000 small businesses will pay no business rates. London gets full retention of its business rates next April, three years earlier than planned.
Wales- The price of the toll to cross Severn Bridge is halved.
Homelessness- £115m to reduce rough sleeping.
Flood defences and insurance- A £700m increase for flood defences and a 0.5% increase in the insurance premium tax to 10%.
Culture- Cathedral repairs fund gets an extra £20m,Tax breaks for galleries that go on tour.
Education- Schools to become academies, Focus on northern schools, Teaching maths to 18 for all pupils, £500m for national funding formula.
Tobacco- A floor on the price of cigarettes through a minimum excise tax on cheaper cigarettes, which has previously been consulted on.
Alcohol- Duty on beer, cider and whisky is frozen.
Capital gains tax- Cut from 28% to 20% in three weeks’ time, but no change for properties.
Overseas aid budget- Budget will be “readjusted”, saving £650m in 2019-20.
Pensions- Increase in contributions from public sector employers.