March 2010 United Kingdom Budget
Encyclopedia
The March 2010 United Kingdom Budget, official known as Budget 2010: Securing the recovery, was delivered by Alistair Darling
, Chancellor of the Exchequer
, to the House of Commons on 24 March 2010.
The budget
speech outlined the Labour
Government's fiscal policies prior to the expected United Kingdom general election, 2010 which had to be called before July.
The Budget's main headlines included:
The Chancellor aimed for public sector net borrowing to fall to 8.5% of GDP by 2011-12, and 4.0% by 2014-15.
Public sector net debt was projected to increase to 73% of GDP by 2012-13.
The Treasury published the Finance Bill 2010 on 1 April, running to 240 pages.
After the General Election was called on 6 April, the Chartered Institute of Taxation expressed concern at the lack of time for debate on complex measures.
In the event, many of the clauses announced in the Budget speech were dropped from the Bill before Parliament was dissolved.
Alistair Darling
Alistair Maclean Darling is a Scottish Labour Party politician who has been a Member of Parliament since 1987, currently for Edinburgh South West. He served as the Chancellor of the Exchequer from 2007 to 2010...
, Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, to the House of Commons on 24 March 2010.
The budget
United Kingdom budget
The United Kingdom budget deals with HM Treasury budgeting the revenues gathered by Her Majesty's Revenue and Customs and expenditures of public sector departments, in compliance with government policy.Adjustment is achieved with the GDP deflator....
speech outlined the Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
Government's fiscal policies prior to the expected United Kingdom general election, 2010 which had to be called before July.
The Budget's main headlines included:
- A one-off "Bank Payroll Tax" on bankers bonus payments, projected to be worth £Pound sterlingThe pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
2bn - £11bn of savings across Government and a further £5bn savings from targeted spending
- Introduce a new right to open a basic bank account
- Above-inflation increases to alcohol and tobacco dutiesExciseExcise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
, with a pledge to redefine strong ciderCiderCider or cyder is a fermented alcoholic beverage made from apple juice. Cider varies in alcohol content from 2% abv to 8.5% abv or more in traditional English ciders. In some regions, such as Germany and America, cider may be termed "apple wine"...
s in September 2010 - To reduce a previously announced fuel duty increase in April 2010, and introduce small increases at intervals
- Temporary increase in small business rate relief
- Threshold for stamp dutyStamp duty in the United KingdomIn the United Kingdom, stamp duty is a form of tax charged on instruments , and requires a physical stamp to be attached to or impressed upon the instrument in question. The more modern versions of the tax no longer require a physical stamp.The scope of stamp duty has been reduced dramatically in...
raised from £125,000 to £250,000 for first-time buyers for two years, and increased stamp duty on homes over £1,000,000 to 5% - Pledge of an increase in future ISAIndividual Savings AccountAn Individual Savings Account is a financial product available to residents in the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status. Money is contributed from after tax income and not subjected to income tax or capital gains tax within a holding...
savings limits to keep pace with inflation, and confirmed previously announced increase in ISA savings limits - Introduction of a tax-break for the British video games sector
The Chancellor aimed for public sector net borrowing to fall to 8.5% of GDP by 2011-12, and 4.0% by 2014-15.
Public sector net debt was projected to increase to 73% of GDP by 2012-13.
The Treasury published the Finance Bill 2010 on 1 April, running to 240 pages.
After the General Election was called on 6 April, the Chartered Institute of Taxation expressed concern at the lack of time for debate on complex measures.
In the event, many of the clauses announced in the Budget speech were dropped from the Bill before Parliament was dissolved.
External links
- Budget 2010, HM Treasury
- Budget 2010: Securing the recovery, HM Treasury page at the National Archive