Budget Summary

The main bugdet points in summary are as follows:

1, The personal allowance is increased by £1,000 to £7,475. Higher-rate threshold frozen until 2013/14.

2, VAT will increase to 20 per cent on 4 January 2011. No increases in tobacco, alcohol or fuel duty.

3, Capital Gains Tax increased to 28 per cent for higher-rate taxpayers from midnight of Budget day. Rate unchanged for lower-rate taxpayers and 10 per cent rate for entrepreneurs extended to first £5million of gains.

4, The Corporation Tax rate will be reduced to 24 per cent for large firms and 20 per cent for small firms. The Annual Investment Allowance will be reduced from £100,000 to £25,000.

5, There is a £5,000 National Insurance cut for new firms creating jobs outside London and the South-East.

6, There will be a bank levy from January 2011 to raise £2billion per year.

7, The planned Landline Duty has been cancelled.

8, Government is to work with local authorities to freeze Council Tax.

9, State pension to be linked to average earnings and always increased in line with earnings, inflation or 2.5 per cent (whichever is greater).

10, Other benefits to be linked to Consumer Prices Index, instead of Retail Prices Index.

11, Two-year pay freeze for workers in public sector.

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