1999 United Kingdom budget explained

United Kingdom Budget
Year:1999
Country:United Kingdom
Previous Budget:1998 United Kingdom budget
Previous Year:1998
Next Budget:2000 United Kingdom budget
Next Year:2000
Date Submitted:9 March 1999
Parliament:52nd
Party:Labour
Chancellor:Gordon Brown
Total Revenue:£349 billion
Total Expenditures:£349 billion
Deficit:£0 billion
Url:Budget 1999
Below:Numbers are projections.

The 1999 United Kingdom Budget, officially known as Budget 99: Building a Stronger Economic Future for Britain was the formal government budget for the year 1999.[1]

Background

The budget took place during a period of continuing economic expansion, shortly after the launch of the Euro currency on 1 January 1999, and at the tail end of the dot-com bubble.

During 1998, net public sector debt stood at £361.2 billion, 35.6 per cent of GDP.[2] [3]

Interest rates had declined rapidly over the previous twelve months from a peak of 7.5 per cent in June 1998 to 5.5 per cent by February 1999,[4] whilst inflation during 1998 was recorded at 1.6 per cent (CPI) and 3.4 per cent (RPI).[5] [6]

Budget measures

A new starting rate of income tax at 10 per cent was to be introduced in April 1999. Basic rate income tax was to be reduced from 23 per cent to 22 per cent in April 2000. The budget also abolished the married couple's allowance for under-65s and MIRAS mortgage interest relief from April 2000. Child tax credit was to be introduced and employer national insurance contributions cut by 0.5 per cent from April 2001. Stamp duties on property were to be raised. A Climate Change Levy was scheduled for the 2001–02 fiscal year.[7]

Details

Tax Revenue

Receipts1999–2000 Revenues (£bn)
Business rates16
Corporation Tax30
Council Tax13
Excise Duties36
Income Tax88
NI56
VAT54
Other56
Total Government revenue349

Spending

Department1999–2000 Expenditure (£bn)
Debt Interest26
Defense22
Education41
Health61
Housing & Environment13
Industry, Agriculture, Employment 15
Law & Order19
Other41
Social Security102
Transport9
Total Government spending349

Notes and References

  1. Web site: Budget 1999. HM Revenue and Customs. 3 October 2017.
  2. Web site: Net Debt (excluding public sector banks). Office for National Statistics. 1 July 2019.
  3. Web site: Net Debt (excluding public sector banks) as % of GDP. Office for National Statistics. 1 July 2019.
  4. Web site: Official Bank Rate history. Bank of England. 1 July 2019.
  5. Web site: CPI annual rate. Office for National Statistics. 1 July 2019.
  6. Web site: RPI annual rate. Office for National Statistics. 1 July 2019.
  7. News: Gordon Brown: a decade of Budgets. 18 March 2007 . BBC News. 1 July 2019.