Budget 2005 Summary Leaflet | Building a fairer society

			Budget 2005 Summary Investing for our future: Fairness and opportunity for Britain's hard-working families


Homepage Key Budget measures include Maintaining a stable economy High quality public services	Productivity and enterprise in a flexible economy Employment opportunity for all Building a fairer society Protecting the environment	Household income Where taxpayers' money is spent Further information Visit HM Treasury Site

The Government's aim is to build a fairer society in which everyone can contribute to and share in rising national prosperity. A flexible and dynamic economy must go hand-in-hand with a fairer society so that everyone has the chance to fulfil their potential. The Government is committed to tackling child and pensioner poverty, providing support for families with children and ensuring security for all in old age. It is also creating a modern and fair tax system which raises sufficient revenue for public services and ensures that everyone pays their fair share of tax.

The Child Tax Credit was introduced in April 2003, supporting families with children and helping to tackle child poverty. By December 2004, around 10 million children were benefiting from the support it provides. The Pension Credit, introduced in October 2003, provides extra help for low and modest income pensioners and rewards those who have saved for retirement.
Budget 2005 announces:

a commitment to increase the child element of the Child Tax Credit at least in line with average earnings up to and including 2007-8;
improved financial support for 16 to 19 year olds in learning, through extending Child Benefit and Child Tax Credit from April 2006; and piloting a new Activity Agreement and Allowance for 16 to 17 year olds not in education, employment or training;
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 will receive £200 towards the cost of council tax alongside the 2005 Winter Fuel Payment;
the extension of existing higher Individual Savings Accounts annual investment limits to April 2010;
a doubling of the starting threshold of stamp duty on all residential property transactions to £120,000;
further reforms to modernise the tax system, including changes to the way oil companies pay tax; and a number of measures to clamp down on tax fraud and avoidance; and
an increase in duties on tobacco, beer and wine in line with inflation, and freezes the duty on spirits and cider.