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Chancellor delivers Summer Budget statement - Wednesday 8 July 201501:06:14

Chancellor delivers Summer Budget statement - Wednesday 8 July 2015

The Chancellor delivers his summer budget.

“This Budget:

• introduces a new National Living Wage for workers aged 25 and above, and asks the Low Pay Commission to set out how it will reach 60% of median earnings by 2020; based on OBR forecasts, this means that the National Living Wage will reach the government’s target of over £9 by 2020

• reduces taxes on working people by further increasing the personal allowance to £11,000 in 2016-17 and the higher rate threshold to £43,000; as a result of increases to the personal allowance announced since 2010, a typical basic rate taxpayer will be £905 better off

• confirms that, from September 2017, free childcare entitlement will be doubled from 15 hours to 30 hours a week for working parents of 3 and 4 year olds

• sets out the next stage of welfare reform, delivering on the government’s commitment to save £12 billion from the working-age welfare budget by 2019-20, including by freezing working-age benefits and Local Housing Allowances for 4 years, reducing rents in social housing by 1% a year for 4 years, reducing the benefit cap, and reforming tax credits and Universal Credit with support focussed on those with support focussed on those with lower incomes

• reforms the taxation of dividends by replacing the Dividend Tax Credit with a Dividend Tax Allowance of £5,000 and setting new dividends tax rates”

...

• eliminate the deficit and run an overall surplus to start paying down debt, while increasing spending on defence and the NHS

• reward work and back aspiration, by introducing a new National Living Wage, cutting taxes so people can keep more of what they earn, and reforming the welfare system to make it more affordable and fair to the taxpayers who pay for it

• back business and make the economy more productive, by cutting corporation tax and increasing the permanent level of the Annual Investment Allowance, and by undertaking major reform of funding for skills and infrastructure to ensure higher standards of living for everyone in the UK

• secure a truly national recovery, by devolving powers and budgets to build a Northern Powerhouse, and create the right conditions for strong growth throughout the UK”

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