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Budget 2016, 31/03/16 [W/E/NI/S]

The Chancellor of the Exchequer gave his Budget to Parliament on Wednesday 16 March 2016. The Budget outlines the UK Government’s plans for spending in the next financial year.

Some of the main points from this year’s budget include:

  • The forecast for economic growth for the next five years has been down-graded from 2.4% to 2%.
  • A million jobs are forecast to be created across the UK by 2020.
  • The annual limit for savings in an ISA is to rise from £15,240 to £20,000
  • Tax-free personal allowance, the point at which people pay income tax, to rise from £11,000 in April 2016 to £11,500 in April 2017
  • A new “lifetime” Isa is being introduced for the under-40s, with government putting in £1 for every £4 saved. People who save a maximum of £4,000 towards a home deposit or retirement will get a £1,000 top-up from the state every year until they turn 50
  • A new state-backed savings scheme will be started for low-paid workers, worth up to £1,200 over four years
  • The Money Advice Service, which has provided financial advice to consumers since 2010, is to be abolished
  • A new sugar tax on the soft drinks industry to be introduced in two years’ time, with the intention of curbing obesity.

You can find the full details of the Budget on the UK Government website. There is also a summary on the BBC website here.