Emergency Budget 2010: At a glance

A VAT hike to 20% and swingeing spending cuts - but good news on CGT and corporation tax....

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Last Updated: 31 Aug 2010
- VAT to rise to 20% from January 2011
- CGT wil increase to 28% immediately - but with exemptions for lower-rate taxpayers (who'll stay at 18%) and entrepreneurs (who not only get to keep their 10% rate but also see the threshold increased from £2m to £5m).
- No further cuts to capital spending; various asset sales pending (and a cash injection into the Royal Mail)
- Average cuts of 25% to departmental spending budgets, apart from health and overseas aid
- Two-year public sector pay freeze, but only for those earning over £21k
- Will Hutton to lead a study into fairer pay
- John Hutton to look at public sector pensions
- £11bn cut to welfare budget
- Reduction in NI payments for businesses employing fewer than 10 people
- Corporation tax being cut to 24% over next four years
- Small companies corporation tax cut from 21% to 20% (instead of being raised to 22%)
- Small reductions to capital allowances
- Banking levy - co-ordinated with France and Germany - that will supposedly raise £2bn a year
- 880,000 lower-rate taxpayers taken out of income tax altogether
- Restoration of link between pensions and earnings


In today's bulletin:

Emergency Budget 2010: Osborne gambles on 'unavoidable' cuts and taxes
Editor's blog: The four-litre enema syringe
PE firms tear up their betting slips as Gala Coral deal falls over
Can BA plug £3.7bn pensions hole?
Good job candidates are par for the course

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