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2009 United Kingdom Budget

2009 (2009) United Kingdom Budget
Royal Coat of Arms of the United Kingdom (HM Government).svg
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

Numbers in italics are projections.

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.

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.


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