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The Alternative Budget

The Alternative Budget




£ million
2010-11 2011-12 2012-13 2013-14 2014-15








Tax measures announced at this Budget





1. Deficit Reduction




1 VAT: increase main rate to 20% from 4 January 2011 +2,850 +12,100 +12,500 +12,950 +13,450
2 Insurance Premium Tax: increase standard rate to 6% and higher rate to 20% from 4 January 2011 +115 +455 +445 +455 +455

2. Enterprise and growth




3 Corporation Tax: decrease to 27% in 2011-12, 26% in 2012-13, 25% in 2013-14 and 24% from 2014-15 -10 -400 -1,200 -2,100 -2,700
4 Small Profits Rate: decrease to 20% from 2011-12 0 -100 -1,000 -1,300 -1,400
5 Capital allowances: decrease main rate to 18% and special rate to 8% from 2012-13 0 0 +1,000 +1,900 +1,800
6 Annual Investment Allowance: decrease to £25,000 from 2012-13 0 0 +100 +1,200 +1,000
7 Social Housing Construction from 2011-12 0 -3,000 -2,000 -1,000 -500
8 Bank Levy: introduce from January 2011 0 +1,150 +2,320 +2,500 +2,400
9 Business rates: backdated bills in 2011-12 +30 -70 -15 -15 -15
10 Employer NICs: relief for new businesses in targeted regions -50 -320 -390 -180 0
11 NICs: increase threshold in 2011-12 0 -6,260 -6,300 -7,020 -7,440

3. Fair taxes




12 Income Tax Reform from 2011-12 0 +17,505 +17,505 +17,505 +17,505
13 Implementation of Tax Reform -3,000 0 0 0 0
14 Capital Gains Tax: increase rate for higher rate taxpayers to 28% and increase Entreprenuers’ Relief to £5 million from 23 June 2010 0 +725 +825 +850 +925
15 Council Tax: reduction to receipts due to a one year freeze in 2011-12 0 -625 -630 -635 -640
17 Cider duty: reverse increase -10 -15 -15 -15 -20
18 Furnished holiday lettings: reverse plans to repeal existing rules -5 -30 -15 -10 -10
19 Managed payment plans: not introduce 0 +140 0 0 0

Total tax policy decisions -160 +21,255 +23,130 +25,085 +24,810
Spending measures announced at this Budget




20 Changes to current spending +3,425 +6,610 +15,005 +21,115 +28,480
21 Changes to capital spending +1,780 +2,020 +2,070 +2,120 +2,160









Total spending policy decisions +5,205 +8,630 +17,075 +23,235 +30,640

Of which specific welfare measures +345 +1,490 +3,485 +6,560 +8,765
22 Benefits, tax credits and public service pensions: switch to CPI indexation from 2011-12 0 +1,170 +2,240 +3,900 +5,840
23 Disability Living Allowance:not introduce 0 0 0 0 0
24 Lone parent benefits: extend conditionality to those with children aged 5 and above from October 2011 0 0 +50 +150 +180
25 Support for Mortgage Interest: set payments at the average mortgage rate from October 2010 +15 -75 -10 +40 +65
26 Saving Gateway: not introduce in July 2010 +10 0 +75 +110 +115

Housing Benefit reform: 0 +220 +600 +1,640 +1,765
27 Local Housing Allowance: set at the 30th percentile of local rents from 2011-12 0 +65 +365 +415 +425
28 Deductions for non-dependents: reverse previous freezes on uprating and maintaining link with prices from 2011-12 0 +125 +225 +320 +340
29 Social sector: limit working age entitlements to reflect size of family from 2013-14 0 0 0 +490 +490
30 Switch to CPI indexation for Local Housing Allowance from 2013-14 0 0 0 +300 +390
31 Reduce awards to 90% after 12 months for claimants of Jobseekers Allowance 0 0 0 +100 +110
32 Additional bedroom for carers from 2011-12 0 -15 -15 -15 -15
33 Local Housing Allowance: caps on maximum rates for each property size, with 4-bed limit from 2011-12 0 +55 +65 +70 +65
34 Additional Discretionary Housing Payments from 2011-12 0 -10 -40 -40 -40

Tax credit reforms: 0 +885 +1,860 +2,105 +2,245
35 Tax credits second income threshold: reduce to £40,000 from 2011-12 0 +140 +145 +155 +145
36 First and second withdrawal rates: increase to 41% from 2011-12 0 +640 +710 +730 +765
37 Reduce the income disregard from £25,000 to £10,000 for two years in 2011-12 then to £5,000 from 2013-14 0 +105 +140 +340 +420
38 Introduce an income disregard of £2,500 for falls in income from 2012-13 0 0 +550 +560 +585
39 New claims and changes of circumstances: reduce backdating from 3 months to 1 month from 2012-13 0 0 +315 +320 +330
40 Child Tax Credit: increase the child element by £150 in 2011-12 and £60 in 2012-13 above indexation 0 -1,200 -1,845 -1,930 -1,995
41 Child Benefit: freeze rates for three years from 2011-12 0 +365 +695 +940 +975
42 Basic State Pension: introduce triple guarantee from 2011-12 0 0 -195 -420 -450
43 Pension Credit Minimum Income guarantee: matching basic State Pension cash increase in 2011-12 0 -415 -535 -535 -535
44 Child Trust Funds: phased abolition of Government contributions from 2010-11 +320 +540 +550 +560 +560

TOTAL POLICY DECISIONS +5,045 +29,885 +40,205 +48,320 +55,450
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Categories: Uncategorized
  1. Mr Oldfield
    August 1, 2010 at 12:26

    Apologies for lack of supporting information due to a formatting problem

  1. August 2, 2010 at 20:44

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