At-a-glance: Budget 2009

Here are the key economic points of Alistair Darling's 2009 Budget:

TAX

• Income tax for those earning more than £150,000 to rise to 50% from April 2010

• Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011

 

UK ECONOMY

• Economy forecast to shrink 3.5% in 2009

• Growth expected to pick up in 2010, expanding by 1.25%.

• Economy to grow by 3.5% annually from 2011

• Public borrowing to increase to £175bn this year

• Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after

• Consumer price inflation to fall to 1% by end of year.

• Capital investment to continue at historically high levels until 2012

 

JOBS AND TRAINING

• Government support for economy to protect 500,000 jobs

• All long-term unemployed under 25s to be offered job or training

• £1.7bn additional resources for Job Centre network

• £250m funding to help people get work experience in growth industries

• Funding to create 54,000 new places in sixth form education

 

HOUSING

• Scheme to guarantee mortgage backed securities to boost lending

• Stamp duty holiday for homes up to £175,000 to be extended to end of year

• Extra £80m for shared equity mortgage scheme

• £500m to kickstart stalled housing projects - including £100m for local authorities to build energy efficient homes

• £50m to upgrade housing for the armed forces

 

GOVERNMENT SAVINGS

• Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed

• An extra £9bn in efficiency savings is planned

• Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

 

BENEFITS

• Child tax credit to rise by £20 by 2010

• Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children

 

SAVINGS

• Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year

 

HELP FOR BUSINESS

• Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010

• Businesses' main capital allowance rate doubled to 40%

• New £750m strategic investment fund to help emerging technologies and regionally important sectors

 

PENSIONERS

• Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension

• Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year

• The basic state pension will be increased by at least 2.5%, regardless of inflation