Treasury Minister Eddie Teare has delivered his first Budget.
The main points are:
Income tax standard rate for individuals remains at 10 per cent.
Higher rate income tax remains at 20 per cent.
Income tax personal allowances are also unchanged - at £9,300 for single people and £18,600 for jointly assessed couples.
Additional personal allowances for over 65s remains at £2,020.
Threshold at which the higher rate for individuals becomes payable stays at £10,500.
Personal Allowance Credit reduced by £200 per person.
A National Insurance rebate scheme is being introduced to defray the employment costs of firms taking on additional employees.
Restriction on tax relief on mortgage interest and loan interest etc to lower tax rate of 10 per cent.
Removal of tax relief on maintenance payments and maintenance received is no longer classed as taxable income.
Increase in National Insurance employees primary threshold by £3 per week and upper earnings limit by £20 per week.
Government has continued to make savings while adopting a new four-year rebalancing plan.
In 2012/13 further savings of £12 million have been achieved to add to the £51 million saved since 2010/11.
Spending is £35 million below last year’s Budget.
Comparative staff costs are £1.5 million below last year’s Budget. Staffing was reduced by 170 posts last year. The overall reductions over three years is 345 posts.
Gross spending on benefits is £249 million, £11.5 million higher (5 per cent) higher than last year, including £151 million on the state pension and pension supplement.
Net spending on health is up by £3.6 million (3 per cent).
A capital programme of £83 million for government departments and statutory boards. This comprises £55 million of construction schemes including £18.1 million to be spent on the local authority housing programme.
