BUDGET 2011: as it happened

George Osborne is just about to make his Budget Statement to the House of Commons.

His initiative to help first-time buyers has been widely trailed this morning, as have Lib Dem-appeasing income tax threshold changes. What else will he announce this afternoon?

&ltb&gtDep Speaker in place, Osborne to speak:&lt/b&gt

This Budget is about helping families with cost of living.

Able to set off from rescue to reform, reform to recovery.

Measures are fiscally neutral across the period.

Higher deficit than Portugal, Greece and Spain.

Stability is not enough. Publishing a plan for growth. GB lost grown in world economy and needs to catch up.

&ltb&gtOBR growth projections:&lt/b&gt
Annual forecast for 2011 revised to 1.7%.
Real GDP growth for 2.5% in 2012. 2.9% in 2013.

Expects inflation between 4%-5% for 2011.

Inflation target will remain at 2% CPI.

Will not replenish gold reserves.

&ltb&gtBorrowing:&lt/b&gt
£146bn borrowing this year.
£122bn 2011/12
£101bn 2012/13
£70bn 2013/14
£46bn 2014/15
£29bn 2015/16

&ltb&gtGlobal competitiveness:&lt/b&gt
Private sector growth must take place of govt deficits.

&ltb&gtFour ambitions for UK:&lt/b&gt
GB have most competitive tax in G20
best place in Europe to start and grow an business
encourage exports and investment
best educated workforce

&ltb&gtTax:&lt/b&gt
Used to have 3rd lowest corp tax rate in Europe, now 6th highest.
Abolishes 43 complex tax reliefs.
Tax system from 04/2012 moves to CPI for tax assumptions.
Income Tax and NI – govt will consult on merging of their operations.
From 04/11 corp tax reduced not just by 1% but by 2%. Continue to fall in each of following three years.

&ltb&gtBusiness:&lt/b&gt
£350m of specific regulations will go.
Moratoriumon new domestic regulations for three years on companies with &lt10 employees.

&ltb&gtPlanning:&lt/b&gt
Pilot auctions of planning permissions on land

&ltb&gtSME finance:&lt/b&gt
Lack of start-up capital a problem.
From April tax relief from 20%-to30%.
Doubling size of entrepreneurs’ relief.

&ltb&gtNon-dom tax:&lt/b&gt
£30k charge for those over 7 years.
Now £50k charge from those over 12 years.

&ltb&gtPersonal tax:&lt/b&gt
50% tax rate would do lasting damage if permanent. Regard as a temporary measure. Asked HMRC to find out how much it brings in.

&ltb&gtTax of high value property:&lt/b&gt
Redoubling efforts to stop owners not paying “fair share””.