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The Government's economic objective is to build a strong
economy and a fair society, with opportunity and security for all.
The Budget sets out how the Government is working to achieve
this goal, building on a platform of stability and growth to ensure the
UK can continue to succeed in the increasingly competitive global economy.
Budget announcements include:
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- an updated economic forecast,
which shows that the UK economy is continuing to grow strongly and that
the Government is meeting its strict fiscal rules for sound public finances
over the economic cycle;
- a long-term programme of investment
to deliver twenty-first century facilities in primary schools, funding
to help schools deliver extended services, and further measures to enhance
young people's skills;
- plans to reduce the burden of regulation on business,
and a new better targeted Local Enterprise Growth Initiative worth £150
million a year in place of relief on commercial property purchases in
disadvantaged areas;
- support for families, by increasing
the child element of the Child Tax Credit at least in line with earnings
up to 2007-8;
- free local bus travel for
people over the age of 60 and disabled people from April 2006, and an
additional payment guaranteeing council tax paying households with someone
over 65 receive £200 towards the cost of council tax alongside
the 2005 Winter Fuel Payment;
- a doubling of the starting threshold of Stamp Duty
on residential property transactions to £120,000;
- further measures to promote employment opportunity
for all, including improvements to the operation
of incapacity benefits;
- further reforms to modernise the
tax system; and a number of measures to tackle
tax fraud and avoidance; and
- an increase, in line with inflation, of fuel duty
rates from 1 September 2005; and the standard
£5 increase in Vehicle Excise Duty for larger and more polluting
cars, with the rate for smaller cars frozen.
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Key
Budget measures include