2000 United Kingdom budget explained

United Kingdom Budget
Year:2000
Country:United Kingdom
Previous Budget:1999 United Kingdom budget
Previous Year:1999
Next Budget:2001 United Kingdom budget
Next Year:2001
Parliament:52nd
Party:Labour
Chancellor:Gordon Brown
Total Revenue:£371 billion
Total Expenditures:£371 billion
Deficit:£0 billion
Url:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/265498/hc346.pdf
Below:Numbers are projections.

The 2000 United Kingdom Budget, officially known as Budget 2000 – Prudent for a Purpose: Working for a Stronger and Fairer Britain was the formal government budget for the year 2000.[1]

Background

The millennium year witnessed Britain's major trading partners, particularly the US and several European economies, enter economic difficulties as part of the early 2000s recession. The dot-com bubble burst, though fallout in the United Kingdom was limited. During the autumn, fuel protests occurred due to rising petrol prices.

During 1999, net public sector debt stood at £364.4 billion, 34.3 per cent of GDP.[2] [3]

Interest rates had showed greater stability in comparison to the previous year, rising from 5 per cent in June 1999 to 6 per cent in February 2000 where it remained for the rest of the year.[4] Inflation abated further during 1999 which recorded 1.3 per cent (CPI) and 1.5 per cent (RPI).[5] [6]

Budget measures

The basic rate of income tax was to be reduced from 23 per cent to 22 per cent from April 2000. The married couple's allowance for under-65s and MIRAS mortgage interest relief was to be abolished from April 2000. Fuel duty was to be frozen in real terms. Excise duties on cigarettes were to increase by 5 per cent above inflation. stamp duties were to be raised. Tax credits and Income Support were scheduled to be increased. Large increases in NHS spending were forecast. The Climate Change Levy was to be reduced before its introduction in April 2001, with the concomitant cut in employer National Insurance contributions instead limited to 0.3 per cent instead of 0.5 per cent.[7]

Details

Tax Revenue

Receipts2000–2001 Revenues (£bn)
Business rates16
Corporation Tax34
Council Tax14
Excise Duties37
Income Tax96
NI59
VAT60
Other55
Total Government revenue371

Spending

Department2000–2001 Expenditure (£bn)
Debt Interest28
Defense23
Education46
Health54
Housing & Environment14
Industry, Agriculture, Employment 15
Law & Order20
Other59
Social Security103
Transport9
Total Government spending371

Notes and References

  1. Web site: Budget 2000. HM Revenue and Customs. 4 July 2019.
  2. Web site: Net Debt (excluding public sector banks). Office for National Statistics. 4 July 2019.
  3. Web site: Net Debt (excluding public sector banks) as % of GDP. Office for National Statistics. 4 July 2019.
  4. Web site: Official Bank Rate history. Bank of England. 4 July 2019.
  5. Web site: CPI annual rate. Office for National Statistics. 4 July 2019.
  6. Web site: RPI annual rate. Office for National Statistics. 4 July 2019.
  7. News: Gordon Brown: a decade of Budgets. 18 March 2007 . BBC News. 4 July 2019.