The key measures unveiled by Chancellor Gordon Brown in his pre-Budget statement to the House of Commons today (Wed 8th Nov)
FUEL AND MOTORING
All fuel duties to be frozen in cash terms until April 2002, with the Treasury forgoing £560 million of revenue from an inflation-linked increase which would have added about 1.5p-a-litre to pump prices. A freeze of a further year if crude oil prices stay high
Wide-ranging reform of the vehicle excise duty (VED) regime on lorries, producing an average reduction of more than 50%, or £715-a-year
Accompanying that, the introduction of a vignette or "Brit disc" scheme which would oblige foreign lorries to pay their share for using British roads, a move designed to remove their competitive advantage over British counterparts
To help farmers, duty on red diesel will be frozen at its current rate of 3p-a-litre, and the Chancellor will use the 2001 Budget to abolish VED on tractors and agricultural vehicles completely
A package of measures to encourage environmentally friendly motoring, including cheaper green fuel and incentives to use less petrol-thirsty cars. Duty on ultra-low sulphur petrol (ULSP) to be cut in the 2001 Budget by 2p-a-litre to make it cheaper than ordinary unleaded petrol. There will also be a 3p cut in duty on ultra-low diesel
Extension of the reduced rate of VED for cars of under 1200cc to those of up to 1500cc, giving an additional five million cars immediate access to a £55-a-year discount.
PENSIONERS
The winter fuel allowance - which goes to every pensioner household free of tax - will be raised from £150 to £200 this year
Basic state pension to rise next April by £5 for single pensioners and £8 for couples - double the rate of inflation - with further inflation-beating rises of £3 and £4.80 respectively in the coming year
The Minimum Income Guarantee to be raised in April from £78.45-a-week to £92.15 for single pensioners, with the Government aiming to raise that to £100-a-week by April 2003. In April, the figure for couples will rise to £140.55, and to £154 a couple by 2003
Mr Brown said that Social Security Secretary Alistair Darling will tomorrow unveil the Government's plans for the new pension credit and new pensioner tax arrangements. The credit will go to couples with incomes below £200-a-week, and single pensioners on less than £135.
EDUCATION
New money to be paid direct to schools to help with repairs and improvements. Primary heads will receive between £4,000 and £7,000; the heads of smaller secondary schools £10,000 and the larger secondaries £30,000.
EMPLOYMENT
Mr Brown said New Deal help and support would be extended from autumn 2001 to all lone parents on Income Support who are not working or who work under 16 hours-a-week
His package of measures also included a new job transition service providing extra help for those affected by large-scale redundancies to move to new jobs.
URBAN RENEWAL
A package including the abolition of stamp duty on property sales in deprived areas, at a cost of £100 million; capital allowances to create flats above shops and offices; accelerated tax relief to clean up contaminated land; VAT cuts to reduce the costs of residential property conversions.
SAVINGS
Limit for annual investment in tax-friendly Individual Savings Accounts (ISAs), due to be cut to £5,000, to stay at £7,000 until 2006
All 16 and 17-year-olds, previously excluded from participation in ISAs, will be allowed to invest £3,000-a-year.
BUSINESS
Reform of the VAT regime for small and medium-sized companies.
To assist the upgrading of listed buildings central to community life, Mr Brown announced that the Government was asking the European Commission to reduce VAT from 17.5% to 5% on repairs to churches
The Government will investigate a new tax incentive and other measures to develop, cut the costs of and ensure the supply of anti-TB, anti-malaria and anti-Aids drugs in the developing world.
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