Today, 2009 United Kingdom budget is a highly relevant topic that captures the attention of people of all ages and backgrounds. Its impact on society and daily life is undeniable, and it generates endless opinions, debates and discussions. It is a topic that arouses curiosity and fascination, but also entails challenges and controversies. In this article, we will explore in detail the different facets of 2009 United Kingdom budget, analyzing its influence in various areas, its evolution over time, and the role it plays in people's lives today.
Presented | 22 April 2009 |
---|---|
Parliament | 54th |
Party | Labour |
Chancellor | Alistair Darling |
Total revenue | £496 billion‡ (29% of 2008 GDP) |
Total expenditures | £671 billion (40% of 2008 GDP) |
Deficit | £175 billion (10.5% of 2008 GDP) |
Website | Budget 2009: Building Britain's Future |
‡Numbers in italics are projections.
‹ 2008 |
The 2009 United Kingdom Budget, officially known as Budget 2009: Building Britain's Future, was formally delivered by Alistair Darling in the House of Commons on 22 April 2009. It introduced new tax, spending and debt rises in a financial environment of rising unemployment and recession.
To stimulate the motor industry, a £2,000 scrappage allowance was announced for a car more than 10 years old, if it is traded in for a new car and if it has been in the car buyer's ownership for the previous 12 months. £1,000 of this is to be provided by the government, and £1,000 by a motor manufacturer. The scheme started about mid-May 2009 and was planned to finish at the end of February 2010; however, before it was due to end, it was extended by one month, to the end of March 2010.
For high earners, a 50% tax band was announced for earners of over £150,000 per year to start in April 2010, and tax relief on pension contributions was reduced progressively from 40% to 20% for annual incomes between £150,000 and £180,000 and to 20% above £180,000 commencing April 2011.
Starting in April 2010, those with annual incomes over £100,000 would see their Personal allowance reduced by £1 for every £2 earned over £100,000, until the Personal allowance was reduced to zero, which (in 2010) would occur at an income of £112,950. This had the effect of creating an anomalous effective 60% marginal tax rate in the income band between £100,000 and £112,950, with the marginal tax rate returning to 40% above £112,950. As the Personal allowance has grown over the years, this has resulted in a corresponding increase in the size of the anomalous effective 60% tax band. As of 2018, the effective 60% marginal tax rate now arises for incomes between £100,000 and £123,700.[citation needed]
For savers, limits in Individual Savings Account (ISA) accounts were increased in two phases to a total of £10,200, including an additional £1,500 to the previous upper limit of £3,600 in a cash ISA. The first phase is for those over age 50 years, who can contribute additional amounts from 6 October 2009.
Receipts | 2009-10 Revenues (£bn) |
---|---|
Income Tax | 141 |
Value Added Tax (VAT) | 64 |
National Insurance | 98 |
Excise duties | 44 |
Corporate Tax | 35 |
Council Tax | 25 |
Business rates | 24 |
Other | 67 |
Total Government revenue | 496 |
Department | 2009-10 Expenditure (£bn) |
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Social protection | 189 |
Health | 119 |
Education | 88 |
Debt interest | 28 |
Defence | 38 |
Public order and safety | 35 |
Personal social services | 31 |
Housing and Environment | 29 |
Transport | 23 |
Industry, agriculture and employment | 20 |
Other | 72 |
Total Government spending | 671 |