Budget 2014: At a glance

Published by Mark King on 19 March 2014.
Last updated on 19 March 2014

Big Ben

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

Economy

• 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.

Savers

• 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.

Pensions

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.

Tax

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.

Property

• 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

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).

Energy

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

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