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Presented | Wednesday 8 July 2015 |
---|---|
Parliament | 56th |
Party | Conservative Party |
Chancellor | George Osborne |
Total revenue | £672 billion |
Total expenditures | £743 billion |
Deficit | £69 billion (3.6% of GDP) |
Website | July 2015 Budget documents |
2016› |
The 2015 United Kingdom summer budget was delivered by George Osborne, the Chancellor of the Exchequer, to the House of Commons on Wednesday, 8 July 2015.[1][2]
This was the first fully Conservative budget since that presented by Kenneth Clarke in 1996.[3][4]
Background
The background to the budget was that of significant economic growth at 3%.
The budget proposes spending of £742 billion and an income of £673 billion in 2015-16; a deficit of £69 billion (almost 10% of UK public spending).[5]
The budget passed with a majority of 30 votes (320 votes for, 290 against with 36 abstentions).[6]
All Conservative MPs voted for the budget (with 9 abstentions). The Labour party voted against the bill with 19 MPs abstaining.
Measures
- £750 million extra granted to HM Revenue and Customs to tackle tax avoidance
- Income tax personal allowance raised to £11,000[7]
- Ordoliberal measures to introduce tax incentives for large corporations to create apprenticeships, aiming for 3 million new apprenticeships by 2020
- A national living wage of £9 an hour to be introduced by 2020 for 25+ year olds[8]
- Inheritance tax threshold raised to £1m by 2017 for married couples[8]
- An £800 increase in the amount of maintenance loan paid out to poorer students, paid for by replacing maintenance grants with loans
- Benefit cap reduced to £23,000 in London and £20,000 in the rest of the country[7]
- Starting in April 2016, the Dividend Tax Credit will be removed and replaced with a tax-free Dividend Allowance of £5,000 for all taxpayers, with new rates of tax for dividend income above that amount[9]
- Confirmation that the BBC has agreed to absorb the £650m cost of providing free television licences for over-75s[8]
- Non-domiciled individuals
- Non-domicile status can no longer be inherited
- Non-domiciles who have lived in the UK for the past 15 of the last 20 years will have to pay normal taxation[8]
Taxes
Source | 2015-16 Revenues (£bn) |
---|---|
Income Tax | 170 |
Value Added Tax (VAT) | 133 |
National Insurance | 115 |
Excise duties | 47 |
Corporate Tax | 42 |
Council Tax | 28 |
Business rates | 28 |
Other | 109 |
Total Government revenue | 672 |
Spending
Department | 2015-16 Expenditure (£bn) |
---|---|
Social protection | 231 |
Health | 141 |
Education | 99 |
Debt interest | 36 |
Defence | 45 |
Public order and safety | 34 |
Personal social services | 30 |
Housing and Environment | 28 |
Transport | 28 |
Industry, agriculture and employment | 24 |
Other | 48 |
Total Government spending | 744 |
References
- ^ "Budget 2015: Why are we having another Budget?". BBC News Online. 2015-07-02. Retrieved 2015-07-04.
- ^ "Budget 2015: Osborne offers country 'new contract'". BBC News. 8 July 2015. Retrieved 15 July 2015.
- ^ "Summer Budget 2015: Full text of George Osborne's speech". The Spectator. 8 July 2015. Retrieved 15 July 2015.
- ^ "Budget 2015 summary and highlights: Everything you need to know". Daily Telegraph. 8 July 2015. Retrieved 15 July 2015.
- ^ "Summer Budget 2015" (PDF). p. 18.
- ^ "The Public Whip — Summer Budget 2015 - 14 Jul 2015 at 18:50".
- ^ a b "Budget: The Key Points You Need To Know". Sky News. 8 July 2015. Retrieved 8 July 2015.
- ^ a b c d "Budget 2015: Osborne commits to national living wage". BBC News. 8 July 2015. Retrieved 8 July 2015.
- ^ "The 2015 Summer Budget Review". [Business Sale Report]. 14 July 2015. Retrieved 14 July 2015.