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24 March 2010 Budget Report

With the Finance Bill due for its second reading in the Commons today, the BBC is reporting that the government will abandon its plans to increase duty on Cider and the controversial proposal for a 50p levy on telephone landlines. With parliamentary time running short, clauses repealing the holiday letting rules will also be left the wayside. The Conservatives are claiming to have forced the concessions from the government to ensure the Finance Bill clears the Commons in time for it to be considered by the Lords and passed for Royal Assent by Monday 12 April. Treasury secretary Philip Hammond hailed the tax U-turns as a "major victory for businesses and consumers across Britain".

Published on 1 April with a general election hovering on the horizon, the first Finance Bill of 2010 was always going to be a race against time; many of the tax-raising measures set out in Chancellor Alistair Darling's "no news is good news" Budget statement on 24 March were deferred until a second bill to be introduced after the election.

At 250 pages and only 73 clauses, the Finance Bill 2010 was smaller than its predecessors and was all about putting into effect measures set out in the 2009 Pre-Budget Report. But with time running out before parliament is dissolved on Thursday 8 April, some of the more controversial measures had to be abandoned with the somewhat hollow promise that they would be reintroduced by a Labour government after the general election.

According to Treasury secretary Stephen Timms, the finance bill will help secure economic recovery by introducing targeted support for businesses and households. "Following its passage, around half the tax measures we have announced to halve the deficit will have been passed into law," he said.

Introduction and Budget Highlights

"This will be a Budget to secure the recovery, tackle borrowing and invest in our industrial future" was how the Chancellor, Alistair Darling summed up the last Budget before the next general election.

Business taxation

Increases in capital allowances and a raft of other changes

Company cars

The company car continues to be an important part of the remuneration package for many employees despite the increases in the taxable benefit rates over the last few years.

Mileage allowances

HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage.

Value added tax

Our extensive and detailed analysis and increases in registration and deregistration limits

National insurance contributions

No increases in this year’s rates and bands

Income tax and personal savings

Income tax rates, rate limits and personal allowances for 2010/11

Capital taxes

Budget changes to the capital taxes

Excise duties

Duties increases announced in this years budget

HM Revenue and Customs powers

HM Revenue & Customs powers are continuing to increase

Other measures announced

Further changes in particular to the operation of duties

The Economy

The recession has exerted enormous pressure on both businesses and consumers. Businesses have struggled to obtain credit; consumers have tightened belts. Here we look at some of the consequences of the worst economic downturn in generations.