These are the main points announced in the Chancellor’s Budget
Tax: As pledged, there are to be no increases in income tax or VAT. Workers’ National Insurance remains unchanged, but employers’ contribution is to increase from 13.8 per cent to 15 per cent and start on earnings above £5,000, aiming to raise £25 billion a year.
Corporation tax remains unchanged at 25 per cent, but capital gains tax on share sales rises from 20 to 24 per cent. Private equity speculators also see their tax rise by 4 per cent to 32 per cent. The “non-dom” tax loophole for the wealthy is to be abolished.
Fuel: A 5p cut on fuel duty introduced by the Tories has been retained for another year.
Tobacco: Tax will increase by 2 per cent above inflation and by 10 per cent above for hand-rolling tobacco.
Alcohol: Duty is to be cut on draught drinks by 1.7 per cent, cutting the price of a pint in a pub by about a penny.
NHS: Health gets a £22.6bn cash injection for everyday spending, with £3.1bn for capital investment.
Education: Core school budgets are to be raised by £2.3bn to hire new teachers, VAT will be levied on private school fees and investment in school breakfast clubs will be tripled as part of a £6.7bn overall education boost.
Arms: The military are to get an extra £2.9bn, with an additional £3bn a year going to fund the Ukraine war “for as long as it takes.”
Trains: The HS2 route will be extended to London Euston station and the Trans-Pennine and East-West rail routes will be funded.
Buses: The £2 cap on single bus fares in England will rise to £3.
Planes: Air Passenger Duty on flights by private jet will go up by 50 per cent.
Housing: The affordable homes budget, which runs until 2026, is to be boosted by £500 million. Local authorities can now retain all right-to-buy receipts to reinvest in new housing.
Local Authorities: Council budgets will rise by 1.5 per cent above inflation.
Minimum wage: The minimum wage for over-21s will rise by 6.7 per cent to £12.21 per hour and for 18 to 20-year-olds from £8.60 to £10, as part of a long-term plan to move towards a “single adult rate.”
Compensation: £11.8bn has been set aside to compensate victims of the infected blood scandal and £1.8bn for wrongly prosecuted Post Office sub-postmasters.
