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The Government’s economic objective is to build a strong economy
and a fair society, where there is opportunity and security for all.
Budget 2007 sets out how the Government is working to achieve this goal,
building on a platform of stability and sustained growth to ensure the
UK can continue to succeed in the increasingly competitive global economy.
Budget announcements include:
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an updated economic forecast, which shows that
the UK economy is stable and growing, and that the Government is
meeting its strict fiscal rules for sound public finances over the
economic cycle;
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the next stage in the Government’s reforms to simplify
the tax system, to provide help for pensioners, support families
and make work pay, including removing the 10 pence starting
rate of tax and cutting the basic rate of income tax from 22 pence
to 20 pence from April 2008;
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further support for families, with the child element of
the Child Tax Credit increasing by £150 per annum,
over and above the commitment to increase it in line with earnings
to the end of this Parliament;
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major reforms to the corporate tax system, reducing
the headline corporation tax rate from 30 per cent to 28 per cent
from April 2008;
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investment in education and skills in the UK to rise to
£90 billion by 2010-11;
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the restriction of tax relief available on empty commercial
properties, to encourage the supply of office, retail and industrial
premises;
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further reforms to modernise the tax system; and an increase
in the tax rate for small companies to tackle individuals artificially
incorporating to minimise tax; and
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measures to protect the environment and to tackle climate
change including an increase in fuel duty rates from 1
October 2007; and increasing Vehicle Excise Duty to encourage the
purchase of less polluting vehicles.
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