Budget Summary - 22 June 2010
Previous budgets have promised ‘something for everyone’. In delivering the first Conservative/Lib Dem budget, George Osborne promised something from everyone in his ‘progressive budget’ speech to balance the books by 2016.
Capital spending totals would be maintained but ‘careful choices’ would have to be made about how it would be spent.
Mr Osborne said the government would cut the structural budget deficit - borrowing not caused by the recession - to zero in the next six years. To achieve this VAT will be increased to 20%.
Capital Gains Tax (CGT) for higher rate tax payers will rise to 28% with immediate effect but there is no change to the rate of CGT for basic rate tax-payers.
The government is also to look at how to limit higher rate pension allowances and will also accelerate the increase in state pension age to 66.