July 2015 United Kingdom budget explained
| United Kingdom budget |
| Year: | 2015 July |
| Country: | United Kingdom |
| Previous Budget: | March 2015 United Kingdom budget |
| Previous Year: | March 2015 |
| Next Budget: | 2016 United Kingdom budget |
| Next Year: | 2016 |
| Presented: | Wednesday 8 July 2015 |
| Parliament: | 56th |
| Party: | Conservative Party |
| Chancellor: | George Osborne |
| Total Revenue: | £672 billion |
| Total Expenditures: | £743 billion |
| Deficit: | £69 billion (3.6% of GDP) |
| Url: | July 2015 Budget documents |
The 2015 United Kingdom summer budget was delivered by George Osborne, the Chancellor of the Exchequer, to the House of Commons on Wednesday, 8 July 2015.[1] [2]
This was the first fully Conservative budget since that presented by Kenneth Clarke in 1996.[3] [4]
Background
The background to the budget was that of significant economic growth at 3%.
The budget proposes spending of £742 billion and an income of £673 billion in 2015-16; a deficit of £69 billion (almost 10% of UK public spending).[5]
The budget passed with a majority of 30 votes (320 votes for, 290 against with 36 abstentions).[6]
All Conservative MPs voted for the budget (with 9 abstentions). The Labour party voted against the bill with 19 MPs abstaining.
Measures
- £750 million extra granted to HM Revenue and Customs to tackle tax avoidance
- Income tax personal allowance raised to £11,000[7]
- Ordoliberal measures to introduce tax incentives for large corporations to create apprenticeships, aiming for 3 million new apprenticeships by 2020
- A national living wage of £9 an hour to be introduced by 2020 for 25+ year olds[8]
- Inheritance tax threshold raised to £1m by 2017 for married couples[8]
- An £800 increase in the amount of maintenance loan paid out to poorer students, paid for by replacing maintenance grants with loans
- Benefit cap reduced to £23,000 in London and £20,000 in the rest of the country[7]
- Starting in April 2016, the Dividend Tax Credit will be removed and replaced with a tax-free Dividend Allowance of £5,000 for all taxpayers, with new rates of tax for dividend income above that amount[9]
- Confirmation that the BBC has agreed to absorb the £650m cost of providing free television licences for over-75s[8]
- Non-domiciled individuals
- Non-domicile status can no longer be inherited
- Non-domiciles who have lived in the UK for the past 15 of the last 20 years will have to pay normal taxation[8]
Taxes
| Source | 2015-16 Revenues (£bn) |
|---|
| Income Tax | 170 |
| Value Added Tax (VAT) | 133 |
| National Insurance | 115 |
| Excise duties | 47 |
| Corporate Tax | 42 |
| Council Tax | 28 |
| Business rates | 28 |
| Other | 109 |
| Total Government revenue | 672 | |
|---|
Spending
| Department | 2015-16 Expenditure (£bn) |
|---|
| Social protection | 231 |
| Health | 141 |
| Education | 99 |
| Debt interest | 36 |
| Defence | 45 |
| Public order and safety | 34 |
| Personal social services | 30 |
| Housing and Environment | 28 |
| Transport | 28 |
| Industry, agriculture and employment | 24 |
| Other | 48 |
| Total Government spending | 744 | |
|---|
Notes and References
- News: Budget 2015: Why are we having another Budget? . . 2015-07-02 . 2015-07-04.
- Web site: Budget 2015: Osborne offers country 'new contract'. 8 July 2015. BBC News. 15 July 2015.
- Web site: Summer Budget 2015: Full text of George Osborne's speech. 8 July 2015. The Spectator . 15 July 2015.
- Web site: Budget 2015 summary and highlights: Everything you need to know. 8 July 2015. Daily Telegraph. 15 July 2015.
- Web site: Summer Budget 2015 . 18.
- Web site: The Public Whip — Summer Budget 2015 - 14 Jul 2015 at 18:50.
- Web site: Budget: The Key Points You Need To Know. Sky News. 8 July 2015. 8 July 2015.
- Web site: Budget 2015: Osborne commits to national living wage. BBC News. 8 July 2015. 8 July 2015.
- Web site: The 2015 Summer Budget Review. [Business Sale Report]. 14 July 2015. 14 July 2015.
