State of the economy
UK grew 2.6% in 2014, faster than any other advanced economy but lower than 3% predicted in December
2.5% growth forecast in 2015, up from 2.4% predicted in December, followed by 2.3%, 2.3%, 2.3% and 2.4% in the next four years
Record employment in the UK, with jobless rate to fall to 5.3% this year
Trade deficit figures “the best for 15 years”
Living standards “higher” than in May 2010, according to OBR data, with households better off by an average of £900 in last five years
Inflation projected to fall to 0.2% in 2015
Business
Tax on “diverted profits” to come into effect next month, aimed at multinational firms moving profits “artificially offshore”
Annual bank levy to rise to 0.21%, raising an extra £900m. Banks to be barred from deducting compensation for mis-selling from corporation tax
Supplementary charge on North Sea oil producers to be cut from 30% to 20% while petroleum revenue tax to fall from 50% to 35%
New tax allowance to encourage investment in North Sea
Review of business rates
Automatic gift aid limit for charities to be extended to £8,000
Farmers to be allowed to average incomes for tax purposes over five years
New tax credit for orchestras and consultation on tax relief for local newspapers
Housing/infrastructure/transport/regions
£15m church repair roof fund to be trebled
Up to £600m to clear new spectrum bands for auction to improve mobile networks: commitment to deliver ultra-fast broadband to all homes
New powers for Mayor of London over skills and planning
Greater Manchester councils to be allowed to keep 100% of growth in business rates
New inter-city rail franchise for south west of England
Toll for Severn river crossings to be reduced from 2018
Consultation on £1bn “tidal lagoon” in Swansea Bay to generate green energy
Alcohol, tobacco and gambling and fuel
Beer duty cut by 1p, cider by 2p, whisky by 2p. Wine duty frozen
Tobacco and gaming taxes to remain unchanged
New “horse racing betting right”
Petrol duty frozen – September’s planned increase scrapped
Personal taxation
The tax-free personal allowance to rise from £10,600 in 2014-5 to £10,800 in 2015-6 and £11,000 in 2016-7
The threshold at which people start paying 40p income tax to rise by above inflation from £42,385 in 2014-5 to £43,300 in 2017-8
Annual paper tax returns to be abolished
Transferable tax allowance for married couples to rise to £1,100
Review of inheritance tax avoidance through “deeds of variation”
Savings
New personal savings allowance – first £1,000 interest on savings income to be tax-free
Annual savings limit for ISA increased to £15,240
“Fully flexible” ISA will allow savers to withdraw money and put it back later in the year without losing any of their tax-free allowance
New “Help to Buy” ISA for first-time buyers will allow government to top up by £50 every £200 saved for a deposit
Armed forces
A further £75m from Libor fines to go to charities for regiments which fought in Afghanistan and government to contribute towards permanent memorial to those who died in Afghanistan and Iraq and help renovate Battle of Britain memorials
£25m to support army veterans, including nuclear test veterans
