Documents to download

This Lords Library briefing on the Chancellor of the Exchequer, George Osborne’s, 2016 Budget provides an overview of some of the key measures. The briefing then outlines the immediate reaction to the statement by MPs on the day of the Budget Statement and by a selection of organisations and commentators.

Announcements

The Chancellor announced a range of measures in the 2016 Budget, including:

  • A new drive to reduce Government spending by a further £3.5 billion in the year 2019–20.
  • An increase in the income tax personal allowance to £11,500 in April 2017.
  • An increase in the higher rate threshold for income tax to £45,000 in April 2017.
  • A raising of the ISA limit and introduction of a new ‘Lifetime ISA’.
  • A reduction in the main rate of corporation tax to 17 percent in 2020.
  • Changes to business rates, capital gains tax and national insurance contributions.
  • Reforms to education, including converting all schools to academies by 2020.
  • The introduction of a new levy on the soft drinks industry from April 2018.

Economic Forecasts and Fiscal Rules

The Office for Budget Responsibility (OBR) reported that its GDP growth forecast for 2016 would be revised down from 2.4 percent to 2 percent, citing a pessimistic international economic outlook and low productivity growth. The OBR’s forecast for UK output per hour was revised down. While the Chancellor would miss his target to achieve a fall in net debt as a proportion of GDP in the current year, the OBR forecast that he was expected to reach another of his targets, the achievement of a budget surplus by 2019–20.

Other information

The House of Commons Library have published:


Documents to download

Related posts

  • Motion to annul temporary relaxation of HGV driving time limits and rest patterns

    Between 12 July and 31 October 2021, the Government temporarily relaxed the enforcement of retained EU law that sets the driving time limits and rest patterns of heavy goods vehicle drivers. This was in response to disruption caused by the HGV driver shortage and the Covid-19 pandemic, amongst other things. The Drivers’ Hours and Tachographs (Temporary Exceptions) (No. 4) Regulations 2021 extends this temporary relaxation from 1 November 2021 until 11.59pm on 9 January 2022. On 6 December 2021, the House of Lords will debate a motion to annul this instrument.

    Motion to annul temporary relaxation of HGV driving time limits and rest patterns
  • Trade and institutional frameworks after Brexit

    What institutions and arrangements will govern the UK’s post-Brexit relationship with the EU? And what will be the implications of Brexit for UK-EU trade in services and trade in goods? This article summarises the findings of three reports from a House of Lords committee that addressed these questions, as well as the Government’s responses. The House of Lords is due to debate the reports on 6 December 2021.

    Trade and institutional frameworks after Brexit