At 12.30pm on Wednesday 22nd April, 2009 Chancellor Alistair Darling officially announced details of 'The Budget 2009'.
At 12.30pm today (Wednesday 22nd April, 2009), Chancellor Alistair Darling announced details of The Budget 2009.
We have summarised the changes that will have the biggest impact on most of our finances in the table below.
| Savings, Investments & Pensions |
| ISAs |
- The total annual ISA limit will be increased to £10,200
- The cash ISA allowance will be increased to £5,100
- These increases will be introduced this year for individuals over the age of 50 and next year for everyone else
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| Pensions |
- Guaranteed increase in basic state pension by at least 2.5%
- Winter fuel allowance increase (£250 for those over 60 and £400 for those over 80) has been extended for another year
- Pension credit limits will be increased to £10,000 from November, 2009
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| Tax |
| Income Tax |
- There has been no change in the current tax bands for those earning less than £150,000
- From April 2010 income tax will increase to 50% for those who earn more than £150,000
- From April 2011 pension tax relief will be restricted for those with incomes over £150,000 and will be gradually tapered to the 20% applied to lower earners
- Personal allowances for those who earn more than £100,000 will be withdrawn from April 2010
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| Alcohol & Tobacco |
| Alcohol |
- Alcohol duty will increase by 2% from midnight tonight
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| Tobacco |
- Tobacco duty will increase by 2% from 6pm this evening
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| Transport |
| Transport |
- £2000 discount on new cars when part exchanged for a car over 10 years old
- This scrappage scheme will be introduced next month and will run until March 2010
- Fuel duty will increase by 2p per litre in September
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| Tax Credits, Benefits & Allowances |
| Tax Credits |
- Child element of child tax credit will increase by £20 from April 2010
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| Benefits |
- Additional £100 a year government-funded contributions to child trust funds for children with disabilities
- Additional £200 a year child trust fund contributions for children with severe disabilities
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| Allowances |
- Statutory redundancy pay will increase to £380 a week
- Grandparents of working age that care for their grandchildren will see this count towards their entitlement for the basic state pension
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| Employment |
| Employment |
- £1.7billion funding for the Job Centre Plus network
- Additional support for those who have been out of work for more than 12 months
- Guarantee that from January everyone under 25 who has been out of work for more than 12 months will be offered a job or a traineeship
- £260million funding for training and subsidies to help young people get the skills and experience they need
- £250million funding in 2010 & £400million in 2011 to fund college places for 16 and 17 years olds
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| Housing |
| Mortgages |
- The higher level of support available to homeowners who are out of work provided by mortgage interest schemes will be maintained for an additional 6 months while they look for a new job
- UK banks will increase the availability of mortgage lending by around £20billion by the end of the year
- Additional £80million funding for Home Buy Direct, the government's shared equity mortgage scheme
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| Housing assistance |
- £500million extra financial support for housing projects that have been stalled due to the credit crunch
- £100million funding for local governments to build energy-efficient housing
- £50million funding to accelerate the modernisation of housing for those in the armed forces
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| Stamp duty |
- Stamp duty suspension on properties sold for less than £175,000 extended until the end of the year
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| Environment |
| Environment |
- £1billion of funding to combat climate change
- 34% cut in carbon emissions by 2020
- £435million support for energy efficiency in homes, schools and public buildings
- £525million support for offshore wind projects
- £4billion funding for renewable energy projects in UK
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