Feeds

Darling points at silver lining, floats investment in broadband

Want some of what he's drinking? It'll cost you

Security for virtualized datacentres

Budget 09 Chancellor of the Exchequer Alistair Darling today used what is likely to be his last Budget to paint an optimistic view of the UK economy and the path out of the world recession.

Darling said: "We will work to support green industries of the future as well as re-building our financial services." He claimed Britain's economy was better placed to recover than those of Germany, Japan and the euro zone as a whole.

The Chancellor predicted the UK economy would decline 3.5 per cent this year, but would return to growth later this year and grow by 1.25 per cent in 2010. By 2011 he predicted annual growth of 3.5 per cent. This is an optimistic target for an economy which has shrunk by 1.25 per cent in the last two quarters.

A car scrappage scheme will be introduced next month to provide £2,000 discounts for people trading in cars older than ten years old for new cars. It will run until March 2010 and Mandelson will provide more details this afternoon.

Darling announced a new 50 per cent tax rate for top earners from next April - this was expected to be 45 per cent.

Businesses should benefit from a doubling of capital allowances to 40 per cent. Darling said he would support investment into a better broadband network extending into "almost every community", but gave no details on what this actually meant.

He said high technology businesses, and environmental businesses, will play a major role in getting us out of recession. Darling said there would be £435m investment in energy efficiency products for homes and businesses. Offshore wind projects will also be supported over the next two years to help hit targets of cutting carbon emissions by 34 per cent by 2020.

Darling said 100,000 businesses were already benefitting from deferring tax bills. He said he would extend this so loss-making firms can reclaim last three years of tax up until 2010.

Most of the "big ideas" were pre-leaked in order not to spook the markets. These include finding £15bn in savings from government budgets , subsidies for new cars if an old vehicle is scrapped, help for the housing market and £90bn in public borrowing.

Tax relief on pensions will be restricted for those earning more than £150,000 from April 2011. Unemployed under-25 year olds will be guaranteed a job or a training place with the help of £260m in spending.

The UK's net debt will rise from 12.4 per cent of GDP this year, or £175bn, then fall to £173bn, then £140bn followed by £118bn.

Taxes on tobacco and alcohol go up two per cent from 6.00pm tonight.

There will be £500m available to kickstart housing projects frozen by the credit crunch. This includes £100m for local authorities to build low energy homes.

The limit for ISAs has also been increased from £7,200 to £10,200.

The Treasury page is here or you can follow them on Twitter. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.