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 Wednesday, 17 April, 2002, 16:23 GMT 17:23 UK
Budget 2002: At-a-glance
The main points of Chancellor Gordon Brown's 2002 Budget


  • 1p in the pound increase in National Insurance contributions on earnings above 4,615
  • Freeze on road tax
  • Freeze on petrol duty
  • 6p on a packet of 20 cigarettes
  • Freeze on beer, spirits and wine duty
  • Duty halved for small brewers - equivalent of 14p off a pint in time for this summer's World Cup
  • Increase in tax on alcopops to the same rate as spirits

  • Bingo exempted from tax
  • Health spending

  • 43% rise in NHS spending over next five years - equivalent of 40bn
  • Health spending to increase by 7.4% a year
  • Extra 1bn in 2002/3 for NHS through cash savings elsewhere
  • Commitment to continue funding NHS out of general taxation

  • Social insurance and other alternative methods of funding ruled out
  • NHS reform

  • Annual report to parliament by independent NHS auditor, for the first time
  • Local reports showing how health money has been spent
  • More choice for patients
  • New financial incentives for hospitals to improve performance
  • Education

  • Direct payments to secondary schools to go up to 114,000 this year
  • Direct payments to primary schools to go up to 39,300 this year
  • Crime

  • 280m extra for fight against crime
  • Families

  • 2.5bn extra for working families
  • New Child Tax Credit will be available right up the income scale
  • It will come into effect in 2003
  • Families with annual incomes of 58,000 or below will receive help
  • For the first year of a child's life families earning up to 66,000 will also receive help
  • Child credit will increase in line with earnings for rest of parliament
  • Parents will receive 54.25 a week for the first child and 92.75 for two child family
  • Families with two children earning up to 35,000 to get up to 50 a week to help with childcare costs
  • Single working people and the disabled

  • Working Families Tax Credit extended to single people

  • This means tax credits for couples without children

  • Working single parents to be guaranteed 179 a week and extra help with childcare
  • Minimum income for working families of 237 a week
  • Working disabled single people guaranteed 194 a week
  • Pensions

  • Basic state pension increased by 3 a week for single OAPs and 4.80 for couples
  • Five million pensioners to gain from Pension Credit of about 400 a year

  • Elderly taxpayers will be able to set the first 6,010 of income against tax, and 6,740 if 75 or over
  • Other measures

  • Tax breaks for amateur sports clubs
  • Review of tax rules for foreign domiciled individuals living in the UK
  • Tax avoidance loopholes on stamp duty closed
  • Tax royalty on North Sea Oil to be abolished
  • Better capital allowances for oil industry accompanied by a 10% increase in tax on profits to 40%
  • The unemployed

  • New measures to help long-term unemployed
  • Extending "step up" scheme for unemployed
  • The environment

  • Road tax cut for least polluting cars and motorbikes
  • Cut of 55 in licence fee for least polluting vans
  • Green power stations exempted from climate change levy
  • Business

  • Small companies tax rate cut from 20p to 19p with immediate effect
  • Corporation tax starting rate cut for small firms with profits of less than 10,000 from 10p to zero
  • From April Capital Gains Tax to be cut from 20% to 10% for business assets held for one year or more and to 10% for assets held for more than two years

  • Extra 30m for small firms' training needs
  • New cash to help small firms get online
  • Automatic relief for VAT on bad debts, for small firms
  • Automatic fines for late VAT payment abolished for 700,000 small firms
  • Plan to extend flat rate VAT to more small firms from next April
  • New R&D tax credit for large firms set at 25% - 400m a year
  • The economy

  • Extra 4bn for public spending next year
  • Debt interest will fall to 21bn this year, 2% of national income
  • GDP growth in 2004 predicted to be between 2.5% to 3%
  • GDP growth in 2003 predicted to be between 3% and 3.5%

  • GDP growth predicted to be between 2 and 2.5% this year
  • UK economy grew by 2.2% in 2001, slightly below the chancellor's forecast

  • Key stories





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