黑洞社区

UK ECONOMY

鈥� Economy set to shrink 3.5% in 2009

鈥� Growth predicted to return in 2010, expanding by 1.25%.

鈥� Economy to grow by 3.5% each year from 2011

鈥� Public borrowing to rise to 拢175bn in 2009

鈥� Consumer price inflation to drop to 1% by end of 2009.

鈥� Capital investment to remain at historically high levels until 2012

JOBS AND TRAINING

鈥� Government support for economy to protect 500 000 jobs

鈥� All long-term unemployed under 25s to be offered job or training

鈥� 拢1.7bn extra cash for Job Centre network

鈥� 拢250m funding to help people get work experience in growth industries

鈥� Funding to create 54 000 new places in sixth form education

HOUSING

鈥� Stamp duty holiday for homes up to 拢175 000 to be extended to end of year

鈥� Extra 拢80m for shared equity mortgage scheme

鈥� 拢500m to get stalled housing projects back on track - including 拢100m for local authorities to build energy efficient homes

鈥� 拢50m to upgrade housing for the armed forces

GOVERNMENT SAVINGS

鈥� Tax loopholes identified which could provide 拢1bn of extra revenue over the next three years if closed

鈥� An extra 拢9bn in efficiency savings is planned

鈥� Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

ENVIRONMENT

鈥� UK to cut carbon emissions by 34% by 2020

鈥� An extra 拢1bn for low carbon industries to help combat climate change

鈥� 拢525m for offshore wind projects over the next two years

鈥� 拢435m funding for energy efficiency schemes for homes, firms and public buildings

鈥� 拢405m to grow low-carbon energy and advanced green manufacturing

鈥� 拢45 million for small-scale renewable electricity and heat technologies, primarily through the Low-Carbon 黑洞社区s Programme

鈥� 拢25 million in funding for low-carbon community heating schemes

HELP FOR BUSINESS

鈥� Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010

鈥� Businesses' main capital allowance rate doubled to 40%

鈥� New 拢750m investment fund to help emerging technologies and regionally important sectors

CONSTRUCTION IN DETAIL

The Government is to tighten up on 鈥渂ogus self-employment鈥� in the construction industry.

The government believes many self-employed operatives in the construction sector are technically employees. It means both the company and individual can avoid tax and national insurance contributions.

The Budget documents say: 鈥淭he Government remains committed to addressing false self-employment in the construction industry.

鈥淭he Government will consult with a view to future legislation to ensure that construction workers and those they work for are taxed appropriately. The Government will work with the construction industry to ensure that any legislation is effectively targeted and the industry retains a flexible labour supply.鈥�

The Government has also sought to cover shortfalls in trade credit insurance with a top-up scheme. The top up has been extended to all industries and all stages of the supply chain with the full scheme capped at 拢5 billion.

Currently some 14 000 companies of all sizes currently buy trade credit insurance against supplies to over 250 000 UK businesses as a guarantee that their bills will be paid.

Suppliers who experience reductions in credit limits may choose to stop future deliveries or refuse to extend credit, adding to pressures on firms potentially already facing difficulties and tending to reduce the level of trade.

In response, the Government will allow, from May 2009 until end December 2009, suppliers to purchase six-months鈥� 鈥榯op-up鈥� insurance from the Government if credit limits on their UK customers are reduced, backdated to 1 April 2009.

The Government has worked collaboratively with the private sector insurers, who will provide this product on the Government鈥檚 behalf, to design a scheme that is well targeted and protects taxpayers鈥� interests.

The amount available to each supplier if a company鈥檚 credit limit is reduced will be that which either restores cover to the original amount, doubles the amount the company is able to obtain from the private sector, or 拢1 million, whichever is the lower.

The aggregate level of insurance provided under the scheme will be capped at 拢5 billion, and companies from all sectors of industry and from all stages of the UK supply chain will benefit from the increased certainty that this scheme provides.