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Budget 2011 as it happened

24 Mar 11
Minute-by-minute updates of the 2011 budget as it happened, plus reactions and insights from the Public Finance team
Minute-by-minute updates of the 2011 budget as it happened, plus reactions and insights from the Public Finance team
11:59
Osborne will make his Budget statement to the Commons at 12.30, after Prime Minister’s questions.
Wednesday March 23, 2011 11:59
12:03
Will his attempts to deliver a ‘Budget for growth’ be dampened by yesterday’s poor public finance figures and inflation rise to 4.4%?
Wednesday March 23, 2011 12:03
12:05
See more pre-Budget coverage from the Public Finance team here
Wednesday March 23, 2011 12:05
12:06
PMQs rather sombre so far with discussion of Libya and Japan. Will economic issues come up later or is it considered off the agenda until 12.30pm?
Wednesday March 23, 2011 12:06
12:09
Here we go, Conservative David Amess weighs in with a reference to the 'rotten mess' Labour left the country in. Then asks for an endorsement of Macmillan nurses.
Wednesday March 23, 2011 12:09
12:10
Today’s Budget tax measures are expected to include: a cut in fuel duty; tax breaks for companies; a rise in the income tax threshold (and perhaps wider reforms to merge income tax and National Insurance); a new levy on private jets; and a new clampdown on tax avoidance and evasion.
Wednesday March 23, 2011 12:10
12:13
‘Growth’ measures are expected to include: a relaxation of planning laws; a loosening of business regulations; and new apprenticeships to boost skills.
Wednesday March 23, 2011 12:13
12:16
If we don't deal with deficit we won't get growth, says PM, in response to q from an MP who rather embarrassingly lost his place.
Wednesday March 23, 2011 12:16
12:17
'A whole series of measures to fire up the private sector' to come in the Chancellor's Budget, Cameron says
Wednesday March 23, 2011 12:17
12:18
PM says every councils has taken part in gov's council tax freeze... 'Chancellor will have a few more things to say in a minute or two...'
Wednesday March 23, 2011 12:18
12:18
A new wave of enterprise zones are also expected to feature in the Budget, with further details from local government secretary Eric Pickles to come tomorrow.
Wednesday March 23, 2011 12:18
12:20
The Office for Budget responsibility will publish its latest forecast alongside the Budget. It is expected to say the Chancellor is on course to meet his 2015 fiscal targets. But forecasts for economic growth will probably be downgraded.
Wednesday March 23, 2011 12:20
12:21
[Comment From newbie ]

whats an enterprise zone exactly?

Wednesday March 23, 2011 12:21 newbie
12:23
Enterprise zones are a government initiative designed to promote growth - planning laws would be relaxed and business rates reduced to encourage start-ups. They were a flagship Thatcher policy during the1980s.
Wednesday March 23, 2011 12:23
12:24
Former Labour minister David Blunkett asks about sell-off of bank assets. This could form an endowment fund for volunteering programme for young people. Cameron says it's an interesting suggestion but too soon to sell them off now.
Wednesday March 23, 2011 12:24
12:27
PFI deals were v expensive, says Cameron. Quotes Labour health spokesman John Healey admitting to Morning Star that Labour gov was 'poor at PFI' adding 'I couldn't agree more'. Healey not looking too amused.
Wednesday March 23, 2011 12:27
12:32
Cameron rounding up on the 'mess' Labour left.
Wednesday March 23, 2011 12:32
12:32
UK was 72nd for wasting government money, Cameron adds
Wednesday March 23, 2011 12:32
12:32
Our banks less sound than the ones in Serbia, Macedonia and Chad. 'We won't tire of reminding' the opposition of that, says the PM.
Wednesday March 23, 2011 12:32
12:33
Few housekeeping announcements from deputy Speaker before we get going.
Wednesday March 23, 2011 12:33
12:33
Osborne has just arrived at the despatch box. Purple tie...
Wednesday March 23, 2011 12:33
12:34
Today's Budget is about 'reforming the nation's economy', and future jobs
Wednesday March 23, 2011 12:34
12:34
We understand how difficult it is for so many.

'Rescue to reform, reform to recovery is made possible because of difficult decisions we've taken.' We've delivered stability.
Wednesday March 23, 2011 12:34
12:35
'This is not a tax raising Budget but nor can we afford a giveway'
Wednesday March 23, 2011 12:35
12:35
Budget built on sound money, encourages enterprise, based on robust independent figures. For making things, not making things up.
Wednesday March 23, 2011 12:35
12:36
UK fiscal plans endorsed by OECD and 'very reputable fiscal body in Britain'
Wednesday March 23, 2011 12:36
12:36
Deficit higher than Portugal, Greece and Spain but same interest rates as Germany.

Achieved stability and credibility.

Is stability the watchword of this Budget?
Wednesday March 23, 2011 12:36
12:36
a plan for growth is being published alongside the Budget
Wednesday March 23, 2011 12:36
12:37
[Comment From Newbie2: ]

Every council has taken part in council tax freeze? Not parish councils! Mine has increased by 90%!

Wednesday March 23, 2011 12:37 Newbie2
12:38
Forecasts: remains that unemployment will peak this year and then fall, and growth to continue in each of next 5 years.
Wednesday March 23, 2011 12:38
12:38
yesterday legislation to put OBR on a permanent footing received Royal Assent
Wednesday March 23, 2011 12:38
12:39
OBR: annual growth revised down to 1.7%
Wednesday March 23, 2011 12:39
12:39
this will create scope for stronger growth in later years, OBR says.
Wednesday March 23, 2011 12:39
12:40
Stronger growth in UK than Spain and France and Italy according to EU growth forecasts.
Wednesday March 23, 2011 12:40
12:40
inflation to remain between 4 and 5 % this year before dropping next year
Wednesday March 23, 2011 12:40
12:41
Inflation target will remain at 2%
Wednesday March 23, 2011 12:41
12:41
additional costs of current military operations will be met by Treasury reserves
Wednesday March 23, 2011 12:41
12:42
with the price of gold at a record high government can't afford to replenish the ones sold 'at a record low' by Labour
Wednesday March 23, 2011 12:42
12:42
Borrowing to fund deficit will fall to £146bn, and £122bn next year.
Wednesday March 23, 2011 12:42
12:42
'the size of the task of repairing Britain's finances is unchanged'
Wednesday March 23, 2011 12:42
12:43
[Comment From Simon: ]

I'm not too sure how rehashing Enterprise Zones tally's with 'reforming the nation's economy'? Am I missing something?

Wednesday March 23, 2011 12:43 Simon
12:44
The government's fiscal madate to eliminate sructural deficit by 2015, and their fixed target for debt, will be met a year early, according to OBR.
Wednesday March 23, 2011 12:44
12:45
Today's Budget an 'urgent call for action' Private sector growth must take the place of the deficit. Country must become world leader in manufacturing, green industries, creative industries etc.
Wednesday March 23, 2011 12:45
12:45
this Budget's ambitions: the most competitive tax regime in Europe...
Wednesday March 23, 2011 12:45
12:46
Taxes should be efficient and support growth, certain and predictable...
Wednesday March 23, 2011 12:46
12:47
Default indexation assumption for direct tax will move to CPI
Wednesday March 23, 2011 12:47
12:48
That CPI change to come in from April. Look to move indirect taxes onto same basis when possible.
Wednesday March 23, 2011 12:48
12:48
government to consult on merging income tax and National Insurance
Wednesday March 23, 2011 12:48
12:49
Not looking to increase taxes but to simplify them.
Wednesday March 23, 2011 12:49
12:49
[Comment From Tom F: ]

What will this mean for pensions?

Wednesday March 23, 2011 12:49 Tom F
12:50
rules for foreign companies to be relaxed. 'I want Britain to be the place international businesses go to, not leave'
Wednesday March 23, 2011 12:50
12:50
From April corp tax will be reduced by 2%, and fall by 1% in each of the following three yrs.
Wednesday March 23, 2011 12:50
12:51
Will be lowest corp tax in G7.

'Britain is open for business'
Wednesday March 23, 2011 12:51
12:51
[Comment From Angela: ]

what does 'default index assumption for direct tax' mean please?

Wednesday March 23, 2011 12:51 Angela
12:51
[Comment From Simon: ]

The obvious challenge here is how to make taxes 'competative' (I.e. low) whilst eliminating a deficit fuelled massively by increased Social Security and welfare payments. It's chicken and egg hoping that a low tax regieme will attract private investment thereby increasing total tax revenues surely?

Wednesday March 23, 2011 12:51 Simon
12:52
[Comment From Angela: ]

what might be the implication of this lowest tax rate be on our neighbour Ireland taht we have just helped rescue?

Wednesday March 23, 2011 12:52 Angela
12:53
the planning system: councils spending 13% more than 5 years ago because of regulations
Wednesday March 23, 2011 12:53
12:53
Tackle the planning system. All planning bodies to prioritise growth and jobs. Controls on green belt remain.
Wednesday March 23, 2011 12:53
12:54
we will remove national targets on previosuly developed land; we will pilot auctions for planning permission on land
Wednesday March 23, 2011 12:54
12:54
Income tax relief for small businesses to increase from 20% to 30%
Wednesday March 23, 2011 12:54
12:55
next week 'Start up Britain' campaign to be launched
Wednesday March 23, 2011 12:55
12:55
[Comment From Tom F: ]

Controls on Green Belt had better remain or there will be trouble as per the forests etc

Wednesday March 23, 2011 12:55 Tom F
12:56
non Doms: charge increased to £50,000 for those in the country for more than 12 years
Wednesday March 23, 2011 12:56
12:56
No further changes to taxes on non-doms in this Parliament.
Wednesday March 23, 2011 12:56
12:57
the 50% tax rate would do lasting damaging to economy if permanent
Wednesday March 23, 2011 12:57
12:57
'We are all in this together' gets a cheer/jeer
Wednesday March 23, 2011 12:57
12:57
50% tax rate is temporary but right now isn't the time to remove it
Wednesday March 23, 2011 12:57
12:58
Taxation of v high-value property. Redoubling efforts to ensure that owners of expensive houses do not avoid paying their fair share.
Wednesday March 23, 2011 12:58
12:58
[Comment From Angela: ]

start up britain? - we haven't stopped have we?

Wednesday March 23, 2011 12:58 Angela
12:58
[Comment From David: ]

default index assumptions - the basis for the increase in personal allowances and the threshold at which higher rate 40% income tax becomes payable. CPI in the long run will be say 0.8% less than RPI so each year we all pay a bit more income tax than we would otherwise have done. It's "default" because it's only what will happen if the government doesn't make a positive decision to raise allowances/thresholds by a different amount. This may have implications for National Insurance contributions also, but I'm not sure.

Wednesday March 23, 2011 12:58 David
12:59
Action to help construction industry. Stamp duty to be levied on mean value, not bulk cost.
Wednesday March 23, 2011 12:59
1:00
Proceeds of this yr's bank levy, £250m commitment to first-time buyers. Help 10k families get on housing ladder.
Wednesday March 23, 2011 1:00
1:00
[Comment From Angela: ]

thanks David

Wednesday March 23, 2011 1:00 Angela
1:01
new export credits created to help small businesses
Wednesday March 23, 2011 1:01
1:02
James Dyson has campaigned for more support for scientists. Osborne has listened.
Wednesday March 23, 2011 1:02
1:03
Supporting private sector central to economic ambitions. Go ahead with scheme to link Manchester Piccadilly and Victoria stations, reduce journey times to Leeds.
Wednesday March 23, 2011 1:03
1:03
£100m to help councils repair winter potholes.
Wednesday March 23, 2011 1:03
1:04
new enterprise zones: we will fund 21, not 10
Wednesday March 23, 2011 1:04
1:04
businesses will get up to 100% discount on rent
Wednesday March 23, 2011 1:04
1:05
More detail on enterprise zones from Pickles tomorrow. One will be in London and picked by Boris Johnson.
Wednesday March 23, 2011 1:05
1:06
Public money to help bring water bills down.
Wednesday March 23, 2011 1:06
1:06
[Comment From Tom F: ]

With additional monies?

Wednesday March 23, 2011 1:06 Tom F
1:07
[Comment From Tom F: ]

Will the additional Enterprise Zones be funded from the previously announced pot of money or will there be addittional money for them all?

Wednesday March 23, 2011 1:07 Tom F
1:07
[Comment From Angela: ]

Enterprise Zones did not work in the 1980s, why would they work now?

Wednesday March 23, 2011 1:07 Angela
1:08
Green taxes to increase as proportion of total tax revenues.
Wednesday March 23, 2011 1:08
1:08
£2bn more given to green investment bank - which will start one year earlier than planned in 2012
Wednesday March 23, 2011 1:08
1:08
Allow Green Investment Bank to borrow and invest, will have resources trebled.
Wednesday March 23, 2011 1:08
1:09
education: the government will fund new university technical colleges
Wednesday March 23, 2011 1:09
1:10
double number of technical unis to 24.
Wednesday March 23, 2011 1:10
1:10
[Comment From Tom F: ]

Such an old fashioned response to a 21st century issue.

Wednesday March 23, 2011 1:10 Tom F
1:10
youth unemployment: 100,000 places on the government's new work experience scheme
Wednesday March 23, 2011 1:10
1:11
another 40,000 apprenticeships for young people
Wednesday March 23, 2011 1:11
1:11
Total of 250k more apprenticeships over next 4 yrs.
Wednesday March 23, 2011 1:11
1:12
[Comment From Angela: ]

yup - same old same old, Cameron not like Thatcher - pull the other one!

Wednesday March 23, 2011 1:12 Angela
1:12
pension announcement coming...
Wednesday March 23, 2011 1:12
1:12
Public service pensions need to be fair to workers and taxpayers.
Wednesday March 23, 2011 1:12
1:13
Treasurt won't ask for more than a 3% contribution from state employees as already stated
Wednesday March 23, 2011 1:13
1:13
Thanks John Hutton for v impressive piece of work. Accepts recommendation as a basis for consultation with unions.

"Shld be no cherry-picking on either side."
Wednesday March 23, 2011 1:13
1:14
a new single tier state pension worth £140 a week to be introduced eventually
Wednesday March 23, 2011 1:14
1:15
Chancellor now turns to personal taxes and duties
Wednesday March 23, 2011 1:15
1:15
[Comment From Tom F: ]

Excellent news on charitable giving - about time!!

Wednesday March 23, 2011 1:15 Tom F
1:15
admin of gift aid to be simplified and wealthy people to be encouraged to give more
Wednesday March 23, 2011 1:15
1:17
charity funding reforms 'a big help for the Big Society'
Wednesday March 23, 2011 1:17
1:17
Tax avoidance and evasion is not fair. Not enough done in recent years.

HMRC estimate £14bn lost in 2008.

New strategy paper on tackling tax avoidance.
Wednesday March 23, 2011 1:17
1:18
Doing more to clamp down on tax avoidance in this Budget than in any of recent years.
Wednesday March 23, 2011 1:18
1:19
the tax avoidance measures in this Budget will raise £1bn a year, £4bn over the Parliament
Wednesday March 23, 2011 1:19
1:19
Chancellor mentions council tax freeze across England, saving families £72 a year on average
Wednesday March 23, 2011 1:19
1:20
In 14 days time, personal income tax allowance will go up by £1000
Wednesday March 23, 2011 1:20
1:21
income tax: from april next yeat personal income tax allowance will increase by £630 to £8,105
Wednesday March 23, 2011 1:21
1:21
No more people pulled into higher rate tax band as a result of this Budget.
Wednesday March 23, 2011 1:21
1:22
1.1m low paid people taken out of tax altogether since the coalition came to power
Wednesday March 23, 2011 1:22
1:22
air passenger duty rise delayed until next year
Wednesday March 23, 2011 1:22
1:24
no changes to rates on alcohol duty above those agreed by Labour
Wednesday March 23, 2011 1:24
1:24
vehicle exercise duty to increase by inflation only and rates frozen altogether for HGVs
Wednesday March 23, 2011 1:24
1:25
[Comment From Simon: ]

I think that the issue of tax avoidance has been really understated so far in the economic debate. Glad to see something's being done at last, but how does this marry with Britain being a more competetive place to do business?

Wednesday March 23, 2011 1:25 Simon
1:26
fuel duty announcement coming...
Wednesday March 23, 2011 1:26
1:28
a new tax on oil processing to be used to delay inflation rise on fuel duty to next year
Wednesday March 23, 2011 1:28
1:28
Labour's fuel duty 'escalator' to be postponed too.
Wednesday March 23, 2011 1:28
1:28
No fuel duty rise this year... cutting it by 1p per litre.
Wednesday March 23, 2011 1:28
1:28
To take effect from 6pm tonight
Wednesday March 23, 2011 1:28
1:29
'Help for families, help for businesses'
Wednesday March 23, 2011 1:29
1:29
Need an economy that can compete. this is our plan for growth.
Wednesday March 23, 2011 1:29
1:30
Speech comes in at about 56 mins. On the short side.
Wednesday March 23, 2011 1:30
1:30
[Comment From Tom F: ]

Where can I get a copy of the Plan for Growth?

Wednesday March 23, 2011 1:30 Tom F
1:30
Chancellor's final remarks: 'We have put fuel into the tank of Britain's economy.'
Wednesday March 23, 2011 1:30
1:30
Tom F: all relevant docs should be on the Treasury website round about now.
Wednesday March 23, 2011 1:30
1:32
Labour leader Ed Miliband up next...
Wednesday March 23, 2011 1:32
1:32
Ed Miliband: one fact says it all. Growth down, this year and next year. It's hurting but not working. Same old Tories.
Wednesday March 23, 2011 1:32
1:33
[Comment From Tom F: ]

Many thanks

Wednesday March 23, 2011 1:33 Tom F
1:33
government has failed on its growth priorities, Miliband claims
Wednesday March 23, 2011 1:33
1:34
government is cutting too far and too fast, Labour leader says
Wednesday March 23, 2011 1:34
1:34
Pace of cuts has seen consumer confidence fall in almost every months since general election, says Miliband.
Wednesday March 23, 2011 1:34
1:35
Miliband teases Chancellor for blaming poor growth figures on the snow...

while he was on a skiing holiday
Wednesday March 23, 2011 1:35
1:36
Dep speaker has to interfere and get strict. Govt ministers need to show courtesy to opposition members, he says.
Wednesday March 23, 2011 1:36
1:40
Osborne is 'Norman Lamont with an ipod'
Wednesday March 23, 2011 1:40
1:40
On his playlist: je ne regret rien.
Wednesday March 23, 2011 1:40
1:41
Miliband welcomes support for armed forces and Labour will look at those to support growth.
Wednesday March 23, 2011 1:41
1:41
Miliband has a pink tie
Wednesday March 23, 2011 1:41
1:42
Justice Secretary Ken Clark fell asleep during Budget speech, Ed claims.
Wednesday March 23, 2011 1:42
1:43
Decision to cancel flexible working for families with kids aged 14-16 is extraordinary. Losing the mumsnet vote?
Wednesday March 23, 2011 1:43
1:45
[Comment From Simon: ]

Re Chancellor's final remarks "We have put fuel into the tank of Britain's economy." He should have waited until 6 p.m when it would have been cheaper...

Wednesday March 23, 2011 1:45 Simon
1:46
Miliband quotes the Institute for Fiscal Studies: 'There's an awful lot of giving with one hand and taking away with the other.'
Wednesday March 23, 2011 1:46
1:48
Delboy economics, says Miliband
Wednesday March 23, 2011 1:48
1:50
Miliband over...

Don't forget you can read more Budget coverage and reaction here. Thanks to everyone who posted comments and questions!
Wednesday March 23, 2011 1:50

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