Budget 2008 – from Edelman public affairs

12Mar08

image My colleagues from the public affairs team have just written a very comprehensive summary of today’s budget – which I am pleased to share with you:

PDF Download pdf: Budget 2008 – Edelman Public Affairs

Listed below are some of the key point from this document:

  • Updated economic growth forecast: Mr Darling downgraded the mid point of his 2008 growth forecast to between 1.75% and 2.25%. However, he bolstered these figures for 2009, increasing the expected growth to between 2.25% and 2.75%
  • Borrowing: for 2008/9 borrowing will rise to £43bn or 2.9% of national income
  • Income tax: the basic rate will still be reduced to from 22% to 20% in April 2008
  • Inflation: is expected to rise in the short-term, blamed on the global increase in fuel and food prices, but the Chancellor predicted it will be back to the government’s 2% target by 2009
  • Capital Gains tax: the new rate of 18% will still be introduced in April, with some concessions for entrepreneurs
  • Fuel Duty: a real term increase of 0.5p per litre in 2010 was announced, alongside the delay until October of the previously announced raise of 2p per litre
  • Vehicle Excise Duty: a new scheme to target new “gas guzzling” cars
  • Non-Domiciles: Mr Darling kept the controversial non-dom tax announced in his Pre-Budget Report
  • Energy Prices: the Chancellor increase pressure on energy companies to extend their social tariff schemes
  • Alcohol Duty: major above inflation increase to alcohol to deter binge drinking
  • Plastic Bags: Mr Darling said legislation would follow if voluntary efforts

I’m not an expert in this space but it does look at first glance that there are no real shocks in this and that the main objective is one of stability. If you need to know more, I strongly recommend you talk to our public affairs experts.



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