HM Treasury
1. A surplus by 2019-20
This year the deficit will have been cut by almost two thirds from its peak. Over the next 4 years, the deficit will have been eliminated and the government will be running a surplus where more tax is raised than is spent.
To help achieve this, there will be a further 3.5 billion of savings from departmental spending in 2019-20, less than 50p in every 100 the government spends. There will be an efficiency review to inform future spending decisions.
2. Double the dedicated funding for sport in primary schools, paid for by a levy on soft drinks
Soft drinks companies will pay a levy on drinks with added sugar from April 2018. This will apply to drinks with total sugar content above 5 grams per 100 millilitres, with a higher rate for more than 8 grams per 100 millilitres. This wont need to be paid on milk-based drinks or fruit juices.
This will be used to double the primary PE and sport premium (the additional money schools have to spend on PE and sports) to 320 million a year.
3. A longer school day for 25% of secondary schools
25% of secondary schools will be able to opt in to a longer school day from September 2017 so that they can offer a wider range of activities for pupils. There will be up to 285 million a year to pay for this.
4. Every school will be an academy by 2022
By the end of 2020, every school in England will be an academy or free school or be in the process of becoming one. This will give head teachers more control over their budget and the curriculum they teach.
The current system for funding schools will also be replaced by a fairer national funding formula from April 2017. There will be 20 million a year in additional money for schools in the north of England.
5. Lifetime ISA: a new 4,000 ISA that you can use to save for retirement or to buy your first home
From April 2017, any adult under 40 will be able to open a new Lifetime ISA. Up to 4,000 can be saved each year and savers will receive a 25% bonus from the government on this money.
Money put into this account can be saved until you are over 60 and used as retirement income, or you can withdraw it to help buy your first home.
The total amount you can save each year into all ISAs will also be increased from 15,240 to 20,000 from April 2017.
6. The Personal Allowance will increase to 11,500, and the higher rate threshold will rise to 45,000 in April 2017
The Personal Allowance is the amount of income you can earn before you start paying Income Tax. This is currently 10,600 it will already rise to 11,000 in 2016, and will now increase further to 11,500 in April 2017.
The point at which you pay the higher rate of Income Tax will increase from 42,385 to 43,000 in 2016 and to 45,000 in April 2017.
7. HS3 between Leeds and Manchester
60 million has been announced to develop plans to cut journey times to around 30 minutes between Leeds and Manchester, as well as improving transport connections between other cities in the north.
8. 80 million to give Crossrail 2 the go-ahead
This will be used to continue planning for Crossrail 2. The proposed Crossrail 2 route will connect South-West and North-East London, increase tube capacity and reduce the pressure on Victoria and Waterloo stations.
9. 100 million to help people move on from emergency hostels and refuges
This will pay for 2,000 places to live for those who need to move on from emergency hostels and refuges.
10 million will also be available for schemes like No Second Night Out, which is aimed at helping people who have recently started rough sleeping to come off the streets after a single night.
10. New tax allowances for money earned from the sharing economy
From April 2017, there will be two new tax-free 1,000 allowances one for selling goods or providing services, and one income from property you own.
People who make up to 1,000 from occasional jobs such as sharing power tools, providing a lift share or selling goods they have made will no longer need to pay tax on that income.
In the same way, the first 1,000 of income from property such as renting a driveway or loft storage will be tax free.
11. Freezing beer duty to help pubs
Duty rates on beer, spirits and most ciders will be frozen this year.
12. Fuel duty will be frozen again in 2016-17
Fuel duty will be frozen again in 2017-17, saving the typical motorist 75 a year. By the end of 2016-17 fuel duty will have been frozen for 6 years.
13. Making sure large companies cant artificially shift profits out of the UK
Some large companies use excessive interest payments to reduce the tax they pay on their profits in the UK. Relief on interest payments will now be capped at 30% of UK earnings, with exceptions for groups with legitimately high interest payments.
Over the next 5 years, the government will raise nearly 8 billion from large companies and multinationals through changes to the rules on interest and other measures, including:
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introducing rules to prevent multinational companies avoid paying tax in any of the countries they do business in, a technique called hybrid mismatches
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taxing outbound royalty payments better these are fees for using intellectual property like patents and copyrights meaning multinationals pay more tax in the UK
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making sure offshore property developers are taxed on their UK profits
14. Tax support worth 1 billion for the oil and gas industry
This includes effectively abolishing Petroleum Revenue Tax (a tax on profits from oil fields approved before 1993) and dramatically reducing the supplementary charge on oil and gas extraction.
15. Cutting business rates for all rate payers
From April 2017, small businesses that occupy property with a rateable value of 12,000 or less will pay no business rates.
Currently, this 100% relief is available if youre a business that occupies a property (e.g. a shop or office) with a value of 6,000 or less.
There will be a tapered rate of relief on properties worth up to 15,000. This means that 600,000 businesses will pay no rates.
16. Capital Gains Tax rates will be cut from 6 April 2016, but residential property will still be taxed at current rates
Capital Gains Tax is a tax on the gain you make when you sell something (an asset) that has gone up in value. It is paid at a basic or higher rate depending on the rate of Income Tax you pay.
From April 2016, the higher rate of Capital Gains Tax will be cut from 28% to 20% and the basic rate from 18% to 10%.
There will be an additional 8 percentage point surcharge to be paid on residential property and carried interest (the share of profits or gains that is paid to asset managers).
Capital Gains Tax on residential property does not apply to your main home, only to additional properties (for example a flat that you let out).
17. Employers will pay National Insurance on pay-offs above 30,000 from April 2018
From April 2018 employers will now need to pay National Insurance contributions on pay-offs (for example, termination payments) above 30,000 where Income Tax is also due.
For people who lose their job, payments up to 30,000 will remain tax-free and they will not need to pay National Insurance on any of the payment.
18. Corporation Tax will be cut again to 17% in 2020
The main rate of Corporation Tax has already been cut from 28% in 2010 to 20%, the lowest in the G20. It will now be cut again to 17% in 2020, benefitting over 1 million businesses.
19. Class 2 National Insurance contributions (NICs) for self-employed people will be scrapped from April 2018
Currently, self-employed people have to pay Class 2 NICs at 2.80 per week if they make a profit of 5,965 or over per year. They also pay Class 4 NICs if their profits are over 8,060 per year.
From April 2018, they will only need to pay one type of National Insurance on their profits, C