PBR 2007: LIVE FEED - Darling's debut as it happensby
PBR 2007 - LIVE Running commentary
Stay tuned or click back - Accounting Web will be running a live update of Alistair Darling's Pre-Budget Report (PBR) below.
EARLY DOORS: HM Treasury have announced the Chancellor will now deliver the PBR at the eariler time of 1530 hours.
INTRO: This is a time of increased economic uncertainty in a fragile enivironment. Provided we maintain the course for stability we have set we can respond. Mr Speaker, we will do so by taking no risks to stability. We can take the right long term decisions for our country. We can improve our public services, invest in the highest standards of healthcare and education.
INFLATION: Inflation has risen to 3% but we brought it down and it should be on target for next year and the year after.
NORTHERN ROCK: Full statement to the house later in the week.
BORROWING: Borrowing is 2.3% of national income, less than forecast. Borrowing has been lower than in Japan, America and the OECD as a whole. We are meeting the first fiscal rule.
Debt is 49% across the Euro area, but 37% in the UK - so meeting our second fiscal rule.
We are borrowing not for current consumption but for future investment. That's why this review is tighter across several departments. Departments will save a further £30 billion by 2010. Additionally, asset sales will reduce debt further. Today, because unemployment continues to fall, I can announce we will spend £400 million less a year because of economic failure.
DEFENCE: Protecting the country the foremost duty of any government. I am allocating an additional £400 million for operations this year.
Since 2001 spending on security and intelligence has more than doubled. Now there will be a new single budget that brings together all parts of the government responsible for facing the the threat for terrorism. This will treble in cash terms in a single decade - and includes an extra £700 million for the Home Office over the next three years.
INNOVATION: Britain could be investing as much here as the US. It has more nobel prize winners than an other country than the US. I can announce funding in full of Sir David Cooksy's review. Investment on science and tech to rise to £6 billion in three years.
TRANSPORT: £14.4 billion a year by 2014 - a doubling of investment.
PRIVATE EQUITY: Code of conduct by Sir David Walker will be published next week. Tax loopholes will be addressed. Taper relief withdrawn and replaced by single 18%. Income shifting, vehicle duty and NI exemption abuses also to be dealt with.
CORPORATION TAX: Cut by 2p in the £ to 28% next year, the lowest in the G7.
NON-DOMS: Only 115,000 registered non-doms. A 25k charge would only apply to an estimated 15,000 of them. We don't want to turn away foreign doctors and nurses. But we will look at non-doms who are claiming income as capital and look into introducing a flat-rate charge for everyone.
CLIMATE CHANGE: We are the only country to have met our Kyoto obligations. Increasing the budget of the Environment department to £4 billion a year in three years. Proposals will be brought forward to incentivise cleaner cars. Air travel should be part of the EU emissions trading scheme and make a greater contribution towards its environmental impact. Aviation duty paid on flights rather than individual passengers. Formation of a new Enivormental Transformation Fund at £1.2 billion a year. £800 million for flood defences.
FOREIGN AID: On track to meet 0.5% of national income by 2010.
CHILD POVERTY: Doubling the amount of child maintenance a family can receive without affecting their benefits to £40 a week.
PENSIONS: An extra £200 million to deliver free off-peak national bus travel to every pensioner and disabled person in England.
HOMES: The number of homes increased by 185,000 last year. Planning reforms will help build more homes. We will provide additional investment to make it 240,000 by 2016. Over £4 billion a year so those in the poorest homes can improve them. We need to make sure proporties are used. Fixed rate mortgages can offer more certainty - I want to see them available for ten year terms and longer. Will look at ways of helping first time buyers.
CAPITAL GAINS TAX: Currently transferability between spouses. 100% tax relief on IHT exemptions between spouses. From today combined tax reliefs on their estates will increase from £300k to £600k, and for married couples/civil partnerships to £700k. This will be backdated indefinitely for every widow or widower. This threshold is higher than the price of 97% of UK homes.
ARTS & CULTURE: A spend of over £4 billion over the next three years in the run up to the Olympics.
EDUCATION: Higher than originally proposed - a rise to £74b in 2010.
NHS: A rise by 4% above inflation to ensure increased acces to GP services, cleaner hospitals, and a 28 week maximum referral time for hospital admissions. 20 new hospitals, 140 new walk-in centres.
[Chancellor commends the budget to the house]
Pre-Budget Report 2007: At a glance guide