Summary of budget measures

Tax
? Basic tax down by 1p to 22p in the pound from April 6.
? Capital gains tax from April 6 to be cut for business from 40% to 35% after one year, 30% after two years, 20% after three years and 10% after four years.
? Inheritance tax threshold raised from ?231,000 to ?234,000.
? 40% small and medium business capital allowances to be made permanent.
? All employee shareholders to benefit from 10% capital gains tax rate.

NHS
? NHS spending to grow by 6.1% per year above inflation - ?2,800 per household to be spent on the NHS by 2004.
? 10,000 more nurses.
? Extra ?2bn for the NHS from April. Health spending will be ?54.2bn in 2000/2001.

Education
? ?1bn for education.
? All primary schools to get extra cash - minimum of ?3,000 - for books. The money to go direct to heads.
? Every secondary school to get at least ?30,000 for books.
? Extra money for 16-year-olds in education.

Families
? More help for single parents.
? Take home pay rising for typical family with a real terms improvement of 10%.
? Maternity grant increased to ?300 and review into maternity pay and parental leave.
? Child benefit maximum payment up to ?50 a week, including an extra ?4.35 a week for the poorest children.
? Working family tax credit up from ?200 to ?214 next year.
? Children's tax credit up ?26 to ?442 a year.

Employment
? Unemployment at lowest for 20 years.
? New deal extended to long-term adult unemployed from April 2001.
? Over 50s long-term unemployed to get guaranteed income.
? Tougher penalties for fraudulent social security claims from 1January 2001 and confidential phone line to start in May.

Tobacco and alcohol
? Beer up 1p a pint.
? Spirit duty frozen.
? Wine up 4p a bottle.
? Tobacco duty up 25p a packet - revenues to be spent on health funding.
? New measures to act on tobacco smuggling.

Transport and fuel
? ?280m for transport.
? Fuel duty up 2p a litre - no real terms increase. Ultra low sulphur petrol duty to be set at 1p below other petrol from October 1.
? Vehicle excise duty for all cars frozen to 1 March 2001.
? New lower rates for cars up to 1200cc.

Crime
? Extra ?285m to be spent on fight against crime.

Pensioners
? Pensioners' tax allowance increased to ?5,790 and for those over 75 to ?6,050.
? Reforms to mean 6m pensioners will not pay tax.
? Cut-off point for income support for pensioners raised to ?12,000 of savings.
? New pensioners credit to be developed.
? Free TV licences for pensioners.
? Winter fuel allowance for pensioners will be raised from ?100 to ?150.
? Pensioners guaranteed ?82 a week income - ?172 for couples.

IT
? E-commerce and IT companies will be able to write technological investments off against tax for the next three years.
? Work permit rules relaxed for skilled IT workers.
? ?1bn for regional development: new enterprise funds for poor areas and a regional innovation fund to promote hi-tech clusters.
?Share option incentives of ?100,000 to be offered for up to 15 essential employees by high-tech firms.
? ?150m for new research and development tax credit and tax reductions for small businesses investing in technology.

Charities
? Tax reforms to make it easier to give money and time to voluntary organisations and charities.
? From April 6, the government will add an extra 28p for every pound given by a taxpayer to charity. For every pound contributed through pay packets, the government will add up to 50p worth of tax relief.
? To encourage corporate giving, any company can from next month receive tax relief on the full amount of any donation.
? VAT abolished on charity events.

Savings
? ISA ceiling to stay at ?7,000 for 2000-2001.
? Banks invited to work with Post Office to offer basic banking service to all.

Stamp duty
? Stamp duty raised to 3% on property sales above ?250,000 and 4% for sales above ?500,000. No change for properties under ?250,000.

Flights tax
? Air passenger duty on flights from Scottish Highlands and Islands abolished and cut on economy flights within the UK.

Economic indicators
? Economy grew by 2% in 1999.
? 2000 surplus forecast to be ?17bn.
? Budget is in surplus by ?12bn.
? Surplus next year forecast to be ?14bn.
? Growth is forecast to rise to 2.75%-3.25% this year and 2.25%-2.75% for the next two.
? Inflation is currently at 2.2%; in line with government target for three years.
? The inflation target is reafffirmed at 2.5% over the next three years.
? Social security spending is down by ?3bn.
? Debt repayments are down ?4bn a year, and will be ?12bn in 2000.
? Public spending up by 2.5% a year for three years from 2001.