Budget 2014: At a glance

Big Ben

Chancellor George Osborne has delivered his fifth annual Budget. Read our summary of the key announcements.


• Deficit currently down by a third to 6.6% of borrowing; down by half by the end of 2014. No defecit at all by 2019.

• Britain has "borrowed too much, saved too little". Borrowing to reduce to £44 billion by 2016/17. Small budget surplus expected by 2018/19.

• Growth of 2.7% now forecast for 2014; 2.3% in 2015; 2.6% in 2016; 2.6% in 2017; 2.5% in 2018.

• Earnings to grow faster than inflation in this and the next two years.


• From 1 July, cash Isas and stocks and shares Isas are being merged, with savers able to switch either type into the new account. The limit is also being raised to £15,000.

• The Junior Isa limit is being raised to £4,000 a year.

• The Premium bond cap raised to £40,000 and then to £50,000. Number of £1 million prizes doubled to two a month.

• 10p income tax rate on savings abolished.


Tax restrictions on access to pension pots removed. Pensioners can draw down as much or as little of their pot as they want: no caps, no limits.

• No-one will have to buy an annuity.

• "Right to advice" plan in the works.

• Huge reform of the taxation of pensions.


Personal income tax allowance raised to £10,500 in 2015 (it will rise to £10,000 on 6 April this year).

• Fuel duty rise planned for September to be abolished.

• Fixed-odds betting terminals to face raised duty of 25%.

Bingo boost - duty on Bingo cut to 10% from 20%.

• Tobacco duty will continue to rise by 2% above inflation; alcohol duty escalator scrapped - they will rise in inflation, except for Scottish whisky where duty is frozen. Also West country cider-makers see duty on ordinary cider frozen. Beer duty CUT by 1p.

• HMRC's budget increased to combat tax avoidance. 

• Bank accounts to be raided by HMRC if people have the ability to pay tax, but haven't.

15% Stamp duty for people buying residential homes via a company.

Inheritance tax waived for those in the emergency services who die in the line of duty.


• Help to Buy being extended to 2020, as predicted.

• New homes to be built across the South East, where they are needed, including 15,000 in Ebbsfleet, creating a new garden city.

• Over 200,000 new homes for families.

• Additional £140 million promised to repair damaged flood defences and £200 million to tackle Britain's growing pothole crisis.

Public sector pay and pensions

• Taxpayer savings of £1 billion from revamp of public sector pensions.


Benefits cap details released today, set at £119 billion in 2015-16.

Business and work

• Over 100,000 new apprenticeships to be supported.

• SEED enterprise investment scheme to be made permanent.

• Business annual investment allowance doubled to £500,000 and extended to 2015.

• Boost for British manufacturers, including reduced energy bills (below).


£7 billion package to cut energy bills for businesses and families. Households can expect a £15 cut in bills.

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