22nd Apr 2009
- The UK economy is forecasted to shrink by 3.5% in 2009. The growth forecast for 2010 is 1.25%, and from 2011 onwards its 3.5% a year.
- Inflation will reach 1% by the end of the year. The retail price index will drop by -3.5%.
- Public sector net borrowing is expected to hit 175bn this year (12.4% of GDP), and then 173bn, 140bn, 118bn and 97bn in the years that follow.
- UK net debt stands at 59%, rising to 68% next year and increasing again to 79% by 2013/14
- Income tax will not go up this year for most, however those earning more than 150,000 will see an increase from 45% to 50% from April 2010.
- Fuel duty will be upped by 2% from September, and 1% above indexation every year for the next four years.
- Alcohol and tobacco duties will be increased by 2% from 6pm today.