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Key Facts: the UK Budget

Key Facts about the UK Budget

• 2.5% economic growth and on target


• Business investment to grow by 4.5 to 5.25%


• Inflation at 2% and hitting expectations


• UK ha5 second highest national income per capita in the g7

£516bn The government expects to collect £516bn in taxes from the UK in 2006-07.This is£29bn more than the previous year, with the largest chunk coming from income tax at £144bn. Corporation tax will provide £49bn, just £5bn up on 2005-06.

£11bn The budget deficit this year. The chancellor quoted the figure as a way of proving that the Budget would balance over the economic cycle. He said the deficit of £16bn this year would be followed by annual deficits of £11bn, £7bn and then an annual surplus of £1bn in 2009, followed by more surpluses of £7bn, £10bn and £12bn.This would total an overall surplus for the cycle of £16bn.

£37bn Net public borrowing this year the chancellor said this compared well with £90bn just over a decade ago. In following years, borrowing is predicted to be £36bn, then falling to £30bn and even more to £25bn, £24bn and £23bn in 2010-11. Borrowing would be 1.5% of national income compared to 8% a decade ago.

£36.45bn Net debt for the UK The chancellor reported that in the following years the figures would be 37.5% for 2007-08, 38.1% for 2008-09, 38.3% in 2009-2010 and 38.4% for 2010-2011.

2.8% The chancellor said that we are now entering the tenth successive year of economic growth, citing 2.8% as the average annual growth over that time. He expected 2.0% to 2.5% for 2006, 2.75% to 3.25% for 2007 and 2.75% to 3.25%for 2008. He said growth was now 'significantly higher than 2.1% average of the period 1979to 1997'.

£552bn The total projected spend by the UK government for 2006-07. Spending is expected to be up £33bn on the previous year with the largest sum, £96bn going on health, up £6bn last year. The smallest spend will be on housing and the environment at £19bn.

3,000 The number of new science teachers to be recruited under a programme to counter felling behind in science and maths. That will include money for 250 new after school science clubs. The education budget for this year will reach £73bn. Every advanced industrial country knows that falling behind in science and mathematics means falling behind in commerce and prosperity the chancellor said in his speech.
© http://pdf.accountancyage.com/aa_tax2_Mar06.pdf?id=0 220306
Accountancy Age Budget Edition 22nd March 2006 pages 4 and 5


Duncan Williamson

posted by Duncan Williamson @ 9:23 PM