Live blog: Budget 2016

Live Blog: Budget 2016

In response to the chancellors budget announcement, the Labour leader attacks the chancellor for helping the rich, privileged, and his "mates".

It was a budget for hedge fund managers, Corbyn says. "The poorest have suffered the greatest proportion of the losses. This Budget could have been a chance for real commitment to fairness and equality. The Chancellor has failed."

Pension reforms

People will be able to roll their help-to-buy ISAs into these schemes.

Anyone under 40 will be able to open a lifetime ISA. For every £4 you save, the government will give you £1 until you are 50 and the money can be used to save for a pension, or for a home.

From April 2017 the will be an increase to the ISA limit to £20,000 a year. The chancelllor is also introducing a flexible way for young people to save with the lifetime ISA. He says this will offer tax free savings into a pension and users won't pay tax when you come to take money out in pension. 

Far too many young people have no pensions and no savings, and most young people face agonising choice on saving for pension or home, says the chancellor.

The chancellor says the brand new rate will be putting rocket boosters on the back of enterprise. 

Osborne announces the headline rate of capital gains tax will be cut from 28% to 20%. 

The chancellor announces beer duty and cider duty are to be frozen. Duty on whisky will also be frozen. Other alcohol duties are to rise in line with inflation.

Fuel duty

The chancellor states fuel duty will be frozen for the sixth year in a row. He states it's the tax boost that keeps Britain on the move. 

He is also accepting the infrastructure commission’s recommendations on energy and London too.

Osborne says the Greater London Authority will move towards the full retention of business rates from next April - three years earlier than planned.

The chancellor states from 2018 the price of the tolls on the Severn crossings are to be halved.

Greater London Authority will move towards full retention of its business rates from in April 2017.

Oil and gas sector 

Supplementary tax charge to be cut in half from 20% to 10% says Osborne and "petroleum revenue tax effectively abolished".

The chancellor says this is only affordable because Scotland is in the UK. If it had voted to go independent in nine days’ time, Scotland would face an economic crisis, says Osborne.

Stamp duty

Small firms to benefit from a commercial stamp duty reform. Some 90% will pay less, or be unaffected, although 9% of firms will pay more.

The chancellor says the new stamp duty rules will come into force in April 2016.

Business rates

Osborne turns to reforms of business rates. He states 600,000 small businesses to be taken out of business rates. He says this could save them £6,000 a year.

Fundamental reform of business tax system

Tax reforms will raise £9bn from large firms, Osborne says.

Osborne says many firms face unfair competition from internet suppliers as some of them do not pay VAT. He says the government plans to stop that. The government plan to close a VAT loophole used by overseas internet merchandisers.

Osborne plans to tackle diverted profits tax and introduce a low tax regime to attract multinational business to country but ensure they pay tax in the country too. 

Today Osborne is publishing a roadmap to make business taxation fit for the future. His approach is guided by best practice advice from the OECD.

Some multinationals borrow here and then offset the payments against tax. Osborne says he will cap interest deductibility at 30%

The chancellor announces plans to reduce rate of corporation tax even further, saying "it is one of the most distortive taxes there is".

By April 2020 corporation tax will fall to 17%. "Cutting corporation tax is only part of our plan for the future."

Spending is due to hit 36.9% of GDP by end of the decade - the same as what the government raises through taxation, says Osborne.

Osborne says the government was spending 45% of GDP in 2010 and in the last parliament the government got that down to 40%.

The inflation target for 2017 has been revised down to 1.7%, from 1.8%.

This is a budget for the next generations, says the chancellor. 

Public sector employer pension contributions are to rise, says Osborne.

Osborne states he wants to keep public pensions sustainable. The changes in the last parliament saved £400bn in the long-run, reports the chancellor.

Osborne says he is writing to the Bank of England saying its inflation target is still 2%. Osborne says, when the economy is growing, Labour says the government can afford to spend more. And when it is not growing Labour says it needs to spend more.

Osborne rejects advice to spend more, saying Britiain must live within its means

Businesses has created 150,000 more jobs.

Today’s figures show employment at the highest level ever. And the claimant count is at its lowest since November 1974.

Monetary policy has been loosened around the world, he says. The Bank of Japan has joined others in introducing latest to introduce negative interest rates.

The OBRs latest forecast: GDP grew by 2.2%, now forecast to grow by 2.1% in each of the three years after 2017. 

The chancellor states in comparison to other countries, Britiain is expected to grow faster than any other country.

Osborne quotes the OBR states a vote to leave the EU could have negative implicaitons and might resolve in greater volitality in financial and asset based markets. 

Debt forecast to be 82.6% of GDP next year, followed by 81.3% in 2017-18, then 79.9% in 2018-19, then 77.2% in 2019-20 and 74.7% in 2020-21.

Osborne says the deficit was 11.1% when he took office.

Deficit forecast to be 2.9% next year, followed by 1.9% in 2017-18 and 1% in 2018-19.

When Osborne became chancellor, the government was borrowing £1 for every £4 it spent, now it is £1 for every £14, reports the chancellor.

Osborne says the best way to help working people is to help them save and to let them keep more of the money they earn.

Osborne chooses “sound public finances to deliver security”, as he states the Conservatives always should.

Today the chancellor states he reports on a “major economy that is growing faster than any other in the world.”, while the government on course to achieve a budget surplus.