Budget 2012: the key points in summary

General remarks • "This country borrowed its way into trouble. Now we're going to earn our way out." • "This budget reaffirms our unwavering commitment to deal with Britain's record debts." • A tax system where "millions of the lowest paid are lifted out of tax altogether and the tax revenues we get from the wealthiest increase". Economy • Impact of the sovereign debt crisis has been "significant". • Office for Budget Responsibility (OBR) says UK will avoid technical recession with positive growth in first quarter of 2012. • OBR says economy has "carried a little more momentum into the new year than previously anticipated" and revises up growth forecast for this year to 0.8% from 0.7% previously. Forecast for cut to 2.0% from 2.1%. Public finances • Fiscal forecasts have "improved a little" from November. Borrowing this year to come in at £126bn, down from November forecast of £127bn . • "In total borrowing is £11bn less than I forecast in the autumn and this will be used to pay down debt." • OBR says government is on course to eliminate structural current deficit by 2016/17. Personal taxes • Personal tax allowance – the threshold at which workers start paying income tax – will rise to £9,205 in April 2013, up £1,100 from £8,105 n April 2012. • Top 50p tax rate will be cut to 45p from April 2013. "No chancellor can justify a tax rate that damages our economy and raises next to nothing." • Clampdown on tax avoidance and evasion, which "I view as morally repugnant". • From midnight a new 7% stamp duty tax on properties over £2m . Business taxes • Corporation tax will be cut to 24% in April, having already been cut to 26% from 28%. • Corporation tax will be 22% by 2014. This is the "biggest sustained reduction in business tax rates for a generation". • Above-the-line R&D tax credit from next year, as demanded by business groups. Child benefit • Child benefit to be partly removed from households where at least one person earns over £50,000 – softened from previous plans. Pensions • Plans to save £5bn by freezing age-related allowances for half Britain's pensioners • State pension age to be automatically reviewed to ensure it keeps up with growing longevity. • Simplification of tax system for pensioners. • Single-tier state pension to be introduced – estimated to be £140. Government bonds • Government's debt management office is consulting on issuing longer-dated gilts beyond 50 years and on the case for perpetual gilts. Business • Enterprise finance guarantee to be expanded. • Wants to double UK exports to £1 trillion this decade . • Michael Heseltine to conduct review on how government can work better with private sector economic development Media and technology • Plans to turn Britain into Europe's technology centre. • Help for video games and premium TV shows , with tax break that will attract companies such as Disney and HBO to make programmes in UK. • "It is the determination of this government that we keep Wallace and Gromit exactly where they are." Infrastructure • Network Rail will upgrade lines in the north of England. • Need to address lack of airport capacity in south-east: "[We] cannot cut ourselves off." • Plan to "look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry". • Ten cities named as beneficiaries of £100m of government money to help develop ultra-fast broadband and Wi-Fi. Cigarettes, alcohol and gambling • New gaming machines duty with standard rate of 20% to be introduced. • Plan to tax online gambling based on location of the gambler, not the company. • Duty on all tobacco products will rise by 5% above inflation, with 37p on a packet of cigarettes from 6pm . • No changes to duty rates set out by previous government. That means beer duty rises by 2% plus inflation, adding around 10p to the cost of a pint. Fuel and vehicles • No changes to fuel duty plans already set out. • Vehicle excise duty to rise by inflation, but frozen for road hauliers. Energy • Package of tax changes to be introduced to ensure make the most from oil and gas extraction. • £3bn new oil and gas field tax allowance targeted at west of Shetland. • Savings to be sought in the administrative cost of carbon reduction commitment to business. Public sector • Looking at making public sector pay "more responsive" to local pay rates. . Armed forces • Government spending in Afghanistan will be £2.4bn lower than planned over remainder of parliament. • Extra £100m of improvements in the accommodation of armed forces and their families. • Doubling of the families welfare grant used to support families left behind when personnel deploy.