Feeds

Brown's Budget: cuts basic rate

The man who would be king

Maximizing your infrastructure through virtualization

Gordon Brown's last Budget speech laid out the achievements he claims to have made since 1997 and cut the basic rate of income tax from 22 pence in the pound to 20 pence.

The threshold for the top rate of income will increase in April 2009 to £43,000.

In a flamboyant performance Brown also cut the rate of mainstream corporate tax to 28 pence. Capital allowances will be simplified to just two categories depending on how long assets last.

Research and development credits are increased by £100m. Although tax on small businesses will increase, from 20p to 22p, Brown said that increased allowances for R&D and investment will effectively compensate them.

Environmental annoucements included a 50 per cent increase in microgeneration grants - sticking a windmill on your roof. There will be no stamp duty on carbon neutral houses up to a value of £500,000. Green products for domestic use will see VAT cut from 17.5 per cent to 5 per cent.

Business rate relief for empty properties will be cut.

Of more interest to many in Vulture Towers: 1 penny on a pint of beer, 5p for a bottle of wine, no increase in spirits but 11 pence on a packet of 20 cigarettes. Nicotine patches and other nicotine replacement products will have their VAT cut to five per cent.

Child benefit goes up in three stages to £20 a week in 2010 for the first child.

Counter terrorism gets an extra £86m and the armed forces get an extra £400m for committments in Afghanistan and Iraq.

Education will see five per cent rises for the next three years, from £60bn to £64bn next year.

Brown even found time for a gag. Referring to reports yesterday that he has a touch of the Stalin about him Brown said "I thank my forthright civil servants, who maybe I should call comrades..."

The speech will be available here, but isn't at the time of writing, in the meantime the Beeb summary is here.®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
UK gov rushes through emergency law on data retention
Cameron: 'The consequences of not acting are grave'
NSA dragnet mostly slurped innocents' traffic
Latest Snowden leak suggests indiscriminate retention
Judge says there's no such thing as a 'Patent Troll'
Apple banned from calling litigant a 'Bounty hunter', 'corporate shell' or 'Troll'
ISPs haul GCHQ into COURT over dragnet interwebs snooping
'Exploitation of network infrastructure is unlawful,' says co-claimant
Trick-cyclists defend Facebook emoto-furtling experiment
'All REAL men ignore consent and privacy'
Siri, did we just take a hit in that voice-recog patent fight?
Yes, Apple, you did, says this Beijing court
Report: UK.gov wants to legislate on comms data BEFORE next election
Ministerial alarm sets in over EU court's data retention ruling
Amazon sues former employee who took Google cloud job
Alleges breach of non-compete clause in contract
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
The Power of One eBook: Top reasons to choose HP BladeSystem
Only the Power of One delivers leading infrastructure convergence, availability and scalability with federation, and agility through data center automation.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.