Cider drinkers instead of bankers bashed in the budget

Below is our (sporadic) blog of the budget. The good news: no new taxes announced on banking. Cider drinkers are being taxed instead.

12.37 - Darling's speaking (already). He says financial markets are febrile. Action to stabilise the banking system was controversial but we were RIGHT. We WILL sell our shares in RBS [good news for RBS bankers]. He says the Treasury's already received 8bn in fees from banks in return for all the help they've given.

Darling also points out that both bankers and banks have paid lots of tax recently: the bonus tax has raised 2bn, twice as much as forecast. He notes too that people receiving bonuses will also have paid high rate income tax on them.

12.41 An international systemic tax on the banks must be brought forward quickly, must be systemically coordinated. Going it alone will cost thousands of jobs in London and across whole country [cheers at this point, unclear whether this is at the prospect of banking jobs disappearing.]

London IS the world's leading financial centre. It supports over a million jobs. A healthy. strong financial services industry is essential for our long term prosperity....

12.44 We took decisive action, etc, etc. Lots of mentions of families, 'families have not been abandoned to their fate'.

12.48 Here's where the money's being spent: Working family tax credits are being extended for over 60 year-olds. All under 24 year olds are being guaranteed a job or training after they've been employed for 6 months. Stamp duty limited is being doubled to from 125k to 250k for this year alone (until election well out of the way), 9 in 10 first time buyers will pay no stamp duty at all. Cunningly funded by an increase in stamp duty to 5% for property over 1m.

12.51 Saving increased by big rise in ISA limits.

12.54 Further niceness to 'family incomes', with staggered below inflation increases in fuel duty.

12.56 Tax receipts better than expected. Not entirely down to bonus tax and income tax on bonuses - VAT up too, fewer job losses etc. Debt will be 100bn lower by 2013-14 than we expected last year....

12.58 Structural deficit expected to fall by two thirds by 2013/2014. Fastest deficit reduction plan of any G7 country. Don't even think of asking us to cut any faster.

13.02 60% of new taxes that have been raised recently fall on the top 5% of earners. Please note that this is not motivated by political ideology - strong cider drinkers shall also be more heavily taxed from now on.

13.07 Civil servants to be forced to live in Liverpool and Skegness.

13.08 It will no longer be possible to rent a mansion on housing benefit.

13.11 RBS and Lloyds will be providing 94bn of new business loans to SMEs this year. New body called (snappily) 'UK Finance for growth' will provide finance for small companies. [So far private sector has only agreed to donate 100m to this, which doesn't sound particularly generous....]

13.16 Business rates are being cut for small businesses - 345,000 of them will pay no rates at all for a year. Annual investment allowance has been increased to 100k, entrepreneur's relief for capital gains tax is being doubled. No increase in main rate of capital gains tax!

13.19 I am setting up an investment bank. It will have 2bn of equity, half from the channel tunnel. It will focus on offshore wind energy. [Think he's referring to 'bank' as in bank of money. Sounds more like an infrastructure fund.]

13.23 We need to keep British computer gaming talent in this country [no mention of keeping bankers here too].

13.25 A 2.5bn growth package (including yet more university places) to be funded partly by the 2bn tax on bankers' bonuses.

13.26 While some people are suffering hardship,. it's even more unfair that some other people are escaping their obligations [lots of cheers and some raucous shouting from unidentified female at this point].

13.27 Signing tax exchange agreement with (among other places) Belize [much delight regarding the implications for Ashcroft].

More child tax credit for children under 2.

13.30 Winter fuel payments for pensioners to remain at higher level, funded by closing tax loopholes.