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EDITIONS
 Wednesday, 3 April, 2002, 12:08 GMT 13:08 UK
Previous Labour Budgets
Since Labour came to power in May 1997, there have been five Budgets, making major changes in personal and company taxation. BBC News Online summarises the main measures.

Click below to read about any of Gordon Brown's previous Budgets.






Summer Budget 1997

  • Mortgage interest relief cut to 10% from April 1998
  • VAT Rate on domestic fuel cut from 8% to 5%
  • Road fuel duties to be increased at a rate of 6% per year in real terms (instead of 5%)
  • Tobacco duty to be increased at a rate of 5% per year in real terms (instead of 3%)
  • Graduated stamp duty introduced: 1% for properties between 60,000 and 250,000; 1.5% between 250,000 and 500,000; 2% over 500,000
  • Windfall tax on privatised utilities
  • Main corporation tax rate cut form 33% to 31%
  • Small companies rate cut from 23% to 21%
  • Dividend tax credits for pension funds and other companies abolished


Spring Budget 1998

  • Working Families Tax Credit from October 1999
  • Married Couples allowance restricted to 10% from April 1999
  • Individual Savings Accounts (ISAs) from April 1999, replacing PEPs
  • Tax on company cars increased
  • Capital Gains Tax reformed; indexation abolished and taper introduced
  • Advance Corporation Tax (ACT) replaced by quarterly payments
  • Main company tax rate cut to 30%, smaller companies rate to 20% from April 1999


Budget 1999

  • Basic rate of income tax cut from 23% to 22% from April 2000
  • New 10% starting rate from April 1999; 20% rate abolished
  • Married couples' allowance abolished from 2000 (for under-65s)
  • Children's tax credit announced from April 2001
  • Mortgage interest relief abolished from April 2000
  • National Insurance employee starting rate aligned with income tax by April 2001
  • Employer rate cut by 0.5% from April 2001
  • Stamp duty raised to 2.5% on all properties between 250,000 and 500,000; 3.5% on properties over 500,000
  • Climate change levy paid by companies from 2001/2002 based on their energy use.


Budget 2000

  • Working Families Tax Credit, child premiums in income support and children's tax credit increased
  • Road fuel duty frozen in real terms
  • Cigarettes increased by 5% in real terms
  • Stamp duty raised to 3% on properties between 250,000 and 500,000 and to 4% on those over 500,000.
  • Climate Change Levy cut by 0.7bn from introduction in April 2001.
  • Employer National Insurance rate to be cut by 0.3% from April 2001, instead of 0.5%, to reflect reduction in Climate Change Levy


Budget 2001

  • Working Families Tax Credit, child premiums in income support and children's tax credit increased
  • ISA limit extended to 7,000pa until April 2006
  • Duties for ultra-low sulphur petrol cut by 2p and for ultra-low sulphur diesel cut by 3p
  • Tobacco duties increased with inflation; alcohol duties frozen
  • Basic state pension increased by 5 per week, or 8 per week for couples


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See also:

07 Mar 01 | Budget 2001
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