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Budget: The Key Points You Need To Know

The key points from the post-election Budget as they were outlined in the Commons.

The Big Announcement

:: A new, compulsory National Living Wage of £9 per hour for over-25s by 2020. Starts next April at £7.20 per hour - up from current minimum wage of £6.50.

"Britain deserves a pay rise and is getting a pay rise," George Osborne says. The Chancellor says a "fractional" effect on jobs is expected. National Insurance contribution cut will help small firms.

Spending

:: Government must save £37bn over five years, Mr Osborne says - £12bn to come from savings through welfare changes, £5bn from crackdown on tax evasion and avoidance and the rest from departmental cuts.

:: Real increase in defence budget to meet NATO commitment to keep it at 2% of GDP. Boost for forces and intelligence agencies.

:: NHS to receive extra £8bn by 2020.

:: Public sector pay awards restricted to 1% per year for the next four years.

Tax

:: Tax-free personal allowance to be raised to £11,000 next year - boosting wages by £900. Higher rate of income tax threshold raised to £43,000.

:: Corporation tax rate will fall to 19% in 2017 and 18% in 2020 to show that "Britain is open for business."

:: Non-dom tax status abolished from April 2017, raising £1.5bn.

:: Climate Change Levy exemption for renewable electricity to be scrapped.

:: Pensions tax annual allowance to be gradually reduced to a minimum of £10,000 from next year.

:: Inheritance tax scrapped for estates under £1m.

:: Reduced tax relief for buy-to-let landlords. Mortgage interest relief on residential property to be restricted to the basic rate of income tax - phased in over four years - from April 2017.

:: From 2017, three new Vehicle Excise Duty bands will come into force for new cars in England only, starting at £140 annually. "Every single penny" from VED will go to a Roads Fund to fund improvements from 2020.

:: No changes to fuel duty this year.

:: Bank levy rate to be gradually reduced over six years with new 8% surcharge on bank profits introduced from January.

Welfare

:: Benefits cap reduced to £23,000 in London and £20,000 outside of the capital.

:: Rents in social housing sector reduced by 1% annually for next four years.

:: Tax Credit and Universal Credit to be limited to families with up to two children from 2017.

:: Working age benefits frozen for four years.

:: 30 hours of free childcare for working parents of three and four-year-olds.

:: Housing benefits for 18-21-year-olds scrapped for those deemed not vulnerable.

Northern Powerhouse

:: Leaders of 10 councils of Greater Manchester agree greater devolution of powers from Westminster. £30m funding for transport for the North, including Oyster-style ticketing. Pushing for more powers for the Midlands.

Students

:: Maintenance grants to be replaced with loans for new students from 2016/17.

Growth

:: Office for Budget Responsibility (OBR) forecasts UK 2015 GDP growth at 2.4% "faster than America."

:: A Fiscal Charter will commit UK to running an overall budget surplus in normal economic times.

:: Borrowing forecast for 2015/16 revised down to £69.5bn, then revised up for following two years to reach £6.4bn in 2018/19.

:: Budget surplus will be achieved a year later than planned in 2019/20, but the national debt will be lower and the surplus larger than expected.

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