Follow the Chancellor's key Budget announcements as they happen...
- Osborne says Budget will deal decisively with the country's record debts. "It pays for the past and plans for the future"
- Labour had "no credible plan" to reduce the record deficit, Osborne says.
- Osborne says "early, determined action has earned us credibility in international markets."
- Osborne says everyone will be asked to contribute to reducing the deficit and that everyone will "share in the rewards when we succeed".
- "I'm not going to hide hard choices from the British people or bury them in the small print of the Budget document," the Chancellor says.
- Osborne on debt: "In this parliament we will ensure that debt is falling as a percentage of GDP by 2015/16."
- UK is set to miss the Labour government's "golden rule" target by £485bn.
- Growth in the UK economy for the coming years is estimated to be: 1.2% this year and 2.3% next year; then 2.8% in 2012.
- Consumer price inflation to peak at 2.7% this year and then fall target 2% remains for MPC.
- The country has overspent; it has not been under-taxed, says Chancellor Osborne.
- Public sector net borrowing will be: £149bn this year, £116bn in 2012-13 falling to £20bn in 2015-16.
- Osborne has abolished the 'Euro preparations unit' in the Treasury after saying the UK will not enter the euro in this term.
- With the full agreement of The Queen, the Civil List will remain frozen at £7.9m for the coming year.
- Spending will rise to £711bn in 2015/16, due to the rising bill for debt interest, which Osborne calls "the price of economic failure".
- The OBR forecast says that the deficit is 0.8% of GDP or £12bn next year.
- The Spending Review will be presented on Wednesday 20th October, Chancellor says.
- The structural current balance will be minus 4.8% of GDP this year. That deficit will be eliminated to plus 0.3% in 2014-15 and plus 0.8% in 2015-16.
- There will be a public sector pay freeze for two years, but those earning less than £21,000 will be protected.
- Public sector net debt as a share of GDP will be 62% this year, before peaking at 70% in 2013-14. It then begins to fall, to 69% in 2014-15 and then 67% in 2015-16.
- Current expenditure will rise from £637bn in 2010-11 to £711bn in 2015-16.
- Anticipated further reductions in departmental spending of £17bn by 2014-15.
- Benefits, tax credits and public service pensions will be up-rated in line with consumer prices rather than retail price.
- Departments will face an average real cut of around 25 per cent over four year.
- "We will target tax credits on those who need the help most"
- "It is simply not possible to deal with a budget deficit of this size without undertaking lasting reform of welfare," Osborne says.
- Chancellor to freeze child benefit for the next three years.
- Osborne on NI: "We will make it cheaper for companies to employ people - threshold at which employers start to pay NI will rise by £21 per week."
- Four annual reductions in the rate of corporation tax will take it down to just 24%, Chancellor announces.
- Osborne says he will also reduce the small companies tax rate to 20p.
- From January 2011, UK will introduce a bank levy.
- New tax scheme - new businesses will be exempt from up to £5k of employer NI payments for 1st 10 employees hired.
- On 4 January next year, the main rate of VAT will rise from 17.5 to 20%. "The years of debt and spending make this unavoidable," Osborne says.
- Osborne says Treasury will help local authorities in England to freeze council tax for one year from next April.
- Taxpayers on higher rates will pay 28% on their capital gains.
- "I can announce an increase in the income tax personal allowance by £1,000 in April," Chancellor says.
- Osborne: "I can today announce that from April next year we will re-link the basic state pension to earnings." Rise in the basic state pension each year in line with earnings, prices or a 2.5% increase - whichever is the greater.
Osborne describes the coalition Government as "a progressive alliance governing in the national interest".
With this Budget, the Government has "had to pay the bills of past irresponsibility", the Chancellor adds.
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