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EDITIONS
Tuesday, 27 November, 2001, 17:30 GMT
Pre-Budget report: At-a-glance
The Chancellor Gordon Brown got to his feet in the House of Commons at 1530 GMT, to begin delivering his pre-Budget report on the state of the UK economy.

Here is a summary of the main points:

HEADLINES

  • UK economy will meet the Treasury's economic growth target of between 2.25% and 2.75% for 2001

  • Economy will grow at a slightly slower rate than previously predicted next year, as chancellor trims 0.25% from his growth forecast for 2002 to between 2% and 2.5%

  • Chancellor says UK needs to devote a "significantly higher share of national income to the NHS" over the next 10 years


    THE NATIONAL HEALTH SERVICE

  • Extra 1bn for National Health Service next year

  • Chancellor reaffirms "commitment to publicly-funded health service", quoting Wanless report into health service funding which is published on Tuesday

  • The chancellor said he wants to forge a "national consensus" that a publicly-funding NHS with higher long-term investment was best for Britain

  • The Wanless report warns that there will be significant financial pressures on the NHS as a result of technological innovations and rising expectations, but less than expected from an ageing population. The report points to a history of under-investment

  • The report confirms the need for significantly higher long-term investment in the NHS, the chancellor said


    CHILDREN AND PENSIONERS

  • All support for children to be paid to the main carer, with the new Children's Tax Credit to be integrated with Child Benefit. The measure is designed to help people who currently miss out on the Working Families Tax Credit

  • New funds - 3bn in total - for retired people with small occupational pensions or modest savings, to be paid in the form of a new pensioner tax credit

  • The Pensioner Credit will help half of all pensioners, the chancellor claims. It will be raised in line with earnings for the rest of the current parliament

  • In addition, the chancellor is to introduce an annual increase in the basic state pension of at least 100 for single people and 160 for pensioner couples, a rise of 2.5% and more if inflation is higher

  • Extension of 200 annual winter fuel allowance to end of current parliament


    HELP FOR THE POOR

  • More cash for deprived areas

  • Stamp duty on business and domestic property transactions worth up 150,000 to be abolished in deprived areas as of Friday to stimulate property market

  • The Department for Work & Pensions will announce new measures for newly redundant people and expand the New Deal for the long-term unemployed

  • Abolition of betting tax on football pools


    THE COST OF TERROR

  • The armed forces will receive 100m towards the war on terrorism with another 20m going on intelligence work in the wake of 11 September

  • Extra 30m for Metropolitan Police and other forces

  • Extra 100m for aid in Afghanistan


    OTHER AID PACKAGES

  • Rural aid after foot-and-mouth will cost 2.7bn

  • Chancellor recommends creation of 50bn 'Marshall Plan' fund to eradicate world poverty


    BUSINESS

  • New research and development tax credit for large businesses

  • Share options will be extended to businesses with a turnover of 30m

  • From April capital gains tax will be set at 20% for business assets owned for a year and 10% for those held for two

  • The chancellor confirmed the extension of the 10p corporation tax band announced in the Budget

  • Flat rate, simplified VAT regime, which the chancellor claims will save the typical small business 1,000 a year

  • New 50m venture capital fund for small busineses

  • A Community Investment Tax Credit which will match every 100m of private investment with 250m of public investment

  • Confirmed plans to charge foreign lorries for using British roads

  • 40m pilot scheme on tax credits for companies who allow workers time off to attend training courses


    THE PUBLIC FINANCES

  • The government had been able to repay 37bn in debt in the last year, 3bn more than predicted, bringing the total repaid since 1997 to 51bn

  • The chancellor warned of "significantly lower tax revenues this year and next" but this will not hit fiscal targets

  • Net borrowing will rise by 1.5bn but total government debt stays low at 31% of GDP

The chancellor ended his speech at 1610 GMT.

The government's pre-Budget report will be on 27 Novewmber


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