Budget 2016 - live - Live coverage - The Independent

Budget 2016 - live

  • Tax evasion measures are expected to raise £12bn before 2020, Osborne said. He takes shots at the Labour party for leaving loopholes for the richest to exploit.

    Child and pensioner policy is down, inequality is down that gender pay gap is smaller, Osborne said.

    This year the richest 1% paid 28% of income tax revenue, he said. That's higher than the last year of Labour government, he claims.
    3/16/2016 12:57:06 PM
  • ...but note big overshoots in yrs up to 19/20 implies big spending cuts/tax rises pencilled in for that final year http://pbs.twimg.com/media/Cdq9DIAWAAA7SWW.jpg

  • Looks like there's a new earworm coming... youtube.com/watch?v=Z8H0xt… (h/t @Dukenfield )
  • Osborne says it's time to redouble efforts to increase productivity in the following ways:
    1. Reform of the business tax system: loopholes closed to boost small businesses
    2. Devolution of power to but rewards in hands of local communities
    3. Commitment to infrastructure
    4. Changes to education
    5. Backing people who work hard and save. 
    3/16/2016 12:58:57 PM
  • Osborne is talking about the ways that multinationals borrow here for overseas projects in order to reduce their tax. They're closing these loopholes he said.

    Multinationals will be stopped from claiming the same tax relief in more than one country.

    Firms will allowed to be use losses more flexibly, restricting the maximum amount of profits that can be used against tax. 

    The largest companies will have to align their profits with their taxes more closely.

    These measures will raise £9bn - without raising taxes. 
    3/16/2016 1:01:45 PM
  • Quick sum suggests additional borrowing over 2015-16 to 2020/21 of £37.5bn #budget2016 : http://pbs.twimg.com/media/Cdq-CnDWwAAn8gK.jpg

  • Corporation tax is going to be reduced further, Osborne says. It was 28%. Osborne reduced it to 20%. By the end of the Tory term he wants it to be 17%.

    3/16/2016 1:02:32 PM
  • The biggest tax cut for business will come from business rates, Osborne says. 

    The business rate threshold moves from £6,000 to £15,000. That means that 600,000 small business will not longer have to pay business rates in the UK. That means an annual saving of £6,000 forever, Osborne says.

    3/16/2016 1:04:48 PM
  • Stamp duty is capitalized in prices, so lower duty benefits existing owners, not future buyers
  • SNP MPs getting very shouty as George Osborne says he's 'backing a key Scottish industry' #Budget2016
  • Osborne has said he is taking action on climate change by 

    Tax on petroleum revenue is effectively going to be cut entirely, Osborne says, to try and help the struggling North Sea oil industry.

    3/16/2016 1:10:01 PM
  • SNP MPs are jeering as Osborne says these measures are to support a Scottish industry "on the broad shoulders of the United Kingdom". Scotland would have split from the UK in 8 days time if there had been a yes vote in the independence referendum, he says.

    3/16/2016 1:11:29 PM
  • The economy will grow slower and take on more debt than previously thought, OBR forecasts ind.pn/21v2GT8
  • Many commenters on Twitter are pointing out that tax cuts are hugely in favour of small businesses, which tend to be pro-Brexit.
    3/16/2016 1:12:35 PM
  • Osborne "effectively" abolishing Petroleum Revenue Tax. But it's bringing in NO money anyway! #budget2016 : http://pbs.twimg.com/media/CdrAhOiWIAAtCMp.jpg

  • Devolution is continuing, Osborne says, with greater powers given to Manchester over Justice. 

    Local governments are going to have more power over business rates and other taxes. They will also have more responsibility to raise money for their budgets, Osborne says.

    3/16/2016 1:14:24 PM
  • ...in fact Petroleum Revenue Tax is COSTING Treasury money, presumably because of loss offsets #Budget2016 : http://pbs.twimg.com/media/CdrAydSWwAAwBho.jpg

  • "We are the builders," Osborne says. All those photoshoots with hard hats have paid off.
    3/16/2016 1:15:17 PM
  • East Anglia and the West of England will each get a mayor-led combined authority with new powers, Osborne says #Budget2016
  • More from Oliver Wright, the Independent's political editor:

    “We’re on course for a budget surplus” Osborne says.

    Significantly the OBR have revised down growth while productivity forecasts also look like they’re down, which is bad news for Osborne, given the focus he has put on improving them.

    GDP forecast to grow by two per cent this year – less than last year.

    Importantly Osborne says that the OBR predications are based on Britain remaining in the European Union. They warn of “negative implications” and “disruptive uncertainty” if the UK pulls out. So Project Fear makes it into the budget speech – to the fury Brexiteer Tory backbenchers.

    There also more of the usual political rhetoric: The Chancellor’s famous ‘long term economic plan’ gets another outing. We haven’t heard much of that one since the election campaign.

    3/16/2016 1:16:18 PM
  • London will also keep the revenue from its business rates - lots of new money for whoever is elected mayor #Budget2016
  • "We're making the Northern powerhouse a reality," Osborne says. He's also said that Crossrail 2 will begin. 

    3/16/2016 1:17:29 PM
  • Oliver Wright, political editor, says:

    Osborne has just quietly broken another fiscal rule - debt
    will be higher as a share of GDP this year.
    That two out of three rules he’s broken so far.
    It’s all a bit reminiscent of Gordon Brown and his broken golden rules – which you’ll remember also got broken.

    3/16/2016 1:17:44 PM
  • Osborne announces increases in flood defences, paying for it by increasing the premium rate insurance tax by half a per cent. 
    3/16/2016 1:18:49 PM
  • Osborne announces £700m boost to flood defences #budget2016 Not long ago ministers were insisting this was enough: http://pbs.twimg.com/media/CdrByvfW0AEnTYR.jpg

  • Developers have already expressed delight that Crossrail 2 is going ahead:

    Dan Labbad, CEO of Lendlease, which is developing a number of huge business projects in London, commented:

    We’re delighted that the Government is pressing ahead with plans to build Crossrail 2. This project isn’t just a vital measure to keep the capital connected, but it has the potential to unlock up to 200,000 homes, helping to tackle London’s housing crisis.

    3/16/2016 1:20:12 PM
  • "Today we're going to complete the task of setting schools free from Local Authorities," Osborne says.

    There's that commitment to turning all schools into academies that was expected.
    3/16/2016 1:21:21 PM
  • All schools are to be forced to become academies whether parents like it or not

    The IndependentThe Government will announce legislation to turn every school in England into an academy, it has been reported. The Guardian newspaper says George Osborne will unveil the concrete plan at Wednesday’s Budget. Last summer, David Cameron laid out his vision for every school to become an academy by 2020.
    3/16/2016 1:21:25 PM
  • George Osborne says government will look at forcing all students to take maths to 18
  • Osborne promising to put the next generation first again. 

    He starts reeling off obesity stats in the UK. One of the biggest contributors to childhood obesity is sugary drinks, he says. Robinsons, Sainsbury's, Tesco and others have reduced the amount of sugar in their drinks.

    We will introduce a new sugar levy on the soft drinks industry, levied on the companies in two years to give companies time.

    There will be two bands, pure fruit juices and milk to be excluded and the smallest companies will be exempt.

    Low sugar and no sugar brands will still be able to advertise. 

    "Some may choose to pass the price onto consumers, which will have an effect on consumers too," he says.

    £520 million expected to be raised - that money will be used to double the amount of funding going into sport.
    3/16/2016 1:25:19 PM
  • George Osborne says new sugar tax will raise £520 million, money will be spent on funding for school sport #Budget2016
  • £12 million from the tampon tax to be donated to women's causes, Osborne says.
    3/16/2016 1:27:29 PM
  • Fuel duty will be frozen for the sixth year in a row. Huge subsidy for motorists #Budget2016
  • Fuel duty is going to frozen for the sixth year in a row, Osborne says.

    "It's the tax boost that keeps Britain on the move," he says.
    3/16/2016 1:28:03 PM
  • Alcohol to rise with inflation and tobacco duty to rise 2 per cent above inflation, as expected.
    3/16/2016 1:29:04 PM
  • Fuel duty: "still make up signific part of household budgets + small biz" So frozen for 6th year. Worth £75 for average driver.
  • Another freeze on fuel duty. If Osborne carries on like this over next five years the cost will be £3bn according to @IFS #Budget2016
  • Class two national insurance contributions are to be abolished altogether for the self-employed, Osborne says. 

    3/16/2016 1:30:24 PM
  • The top rate of capital gains tax is coming down - that means lower taxes for the better off.

    The top rate is coming down from 28% to 20%, while basic rate comes down from 18% to 10%.
    3/16/2016 1:31:20 PM
  • Osborne looks very proud of himself for saying they'll abolish the Liberal Democrats. Cameron's gone red in the face.
    3/16/2016 1:32:33 PM
  • Osborne abolishing the Liberal Democrats? Given he's missing all his other targets we are not that worried. #Budget2016
  • Another new ISA for young people: from April 2017, anyone under 40 will be able to open an ISA and get a 25 per cent bonus on up to £4,000 a year. It's called the Lifetime ISA.
    3/16/2016 1:33:59 PM
  • Osborne cuts capital gains tax from 28% to 20% - he raised it from 18% in his first 2010 budget #Budget2016
  • It's needed because they can't get that from the pensions system, Osborne says. "It's both generous and flexible," Osborne says.
    3/16/2016 1:34:28 PM
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