News

Gordon Brown unveiled his eleventh, and probably last, budget in the Commons.
2007-10-26

• In a surprise move, Mr Brown announced that the basic rate of income tax would be reduced from 22% to 20% from next year.
• Corporation tax will be reduced from 30 to 28% from April 2008. However, the small business rate will go up from 20% to 22% in April 2009.
• Road tax would rise to  £300 this year and £400 by next year for gas-guzzling vehicles. Fuel duty is to rise 2p a litre this October and next year.
• Beer will go up 1p a pint, cider up 1p a litre, wine up 5p a bottle.
  Fortunately, he is not adding vat onto airline tickets.
• The cost of a packet of cigarettes will be up 11%. VAT on nicotine replacement products will be dropped to 5%.
• In a move to lift more children out of poverty, the chancellor said that child benefit would be raised each year to £20 a week for the first child.