Key points from Budget 2015
Today, in the ‘Emergency’ July Budget, and the first Conservative majority budget since 1996, George Osborne said he is setting out a ‘Budget for working people’ that will create a ‘lower tax, lower welfare’ country.
George Osborne told MPs his Budget would set ‘out a plan for Britain for the next five years to keep moving us from a low wage, high tax, high welfare economy; to the higher wage, lower tax, lower welfare country we intend to create’.
The Budget outlined that the UK economy grew by three per cent in 2014. There was also a 2.4 per cent growth forecast in 2015, the same as predicted in March, followed by 2.3 per cent and 2.4 per cent in the two following years.
One million extra jobs are predicted to be created in the UK by 2020.
Reforms that will affect motorists/the motor industry include, a major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England. This could finally end the seemingly unstoppable rise in UK car sales, which is now at 40 months of continuous growth.
New VED bands for new cars will be introduced from 2017, accounting for the rising numbers of low emissions vehicles. The new bands will be pegged to emissions and 95 per cent of car owners will pay £140 a year.
There will also be a law change in regards to when a car will require its first MOT. Current rules stipulate that an MOT is due exactly three years after a car is first registered, however the first MOT will now be four years after purchase.
Despite previous reports that fuel duty was set to rise, there will be no rise in fuel duty with rates continuing to be frozen.
Measures introduced that will affect businesses include, permanent non-dom status to be abolished – from April 2017, anyone who has lived in the UK for 15 of the past 20 years will pay same level of tax as other UK citizens.
There will be a clampdown on tax avoidance and tax evasion with HMRC budget increased by £750m, £7.2bn to be raised from this move.
Bank levy rate to be gradually reduced over the next six years and a new eight per cent surcharge on bank profits introduced from January 2016.
There will be a cap on charges imposed by claims management companies and an increase in insurance premium tax to 9.5 per cent from November.
A new apprenticeship levy for large employers will also be introduced.