Presented 22 April 2009 Party Labour | Parliament 54th Chancellor Alistair Darling | |
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Total revenue £496 billion (29% of 2008 GDP) Total expenditures £671 billion (40% of 2008 GDP) | ||
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.
Details
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.