UK Budget 2007

UK Budget 2007 has been published in March of this year. This will offer a plan about about the total revenues and expenditures of the UK Government for 2007.

Perspectives:

• The focus of the UK Government is to make a fair and up growing economical structure so that it can create employment opportunity for all. This will help to build a good society. Certain regions that are facing great difficulties will get extra attention in this plan.
• UK Budget 2007 shows that Government is maintaining it’s economical rules for public finances and also the economical condition of UK is steady.
• Productivity of the country will be increased by enhancing the technological skills.
• A flexible labor market will be built to better the rate of employment. Also to build a better society, as stated above, more attention will be given to take the children out of poverty.
• In this budget, stress is given on lowering the inflation rate to achieve macroeconomic stability.
• The UK Government wishes to offer a sound public service by ensuring quality education, employment and health system. So a sustained investment on these sectors will be the main feature of this budget.

Budget Plans:

• The main corporation tax rate will be reduced by 28% and the amount of debt will move up to 35 billion pounds. This will ensure the growth of productivity.
• Investment on research and development will be advanced by 2.5%.
• The value added tax rate will be reduced by 12.5% while the tax allowance will rise.
• The basic rate of the income tax will go down to 20 pence and also the starting tax rate will also be reduced to simplify the tax system. These will help the pensioners a lot.
• Gross public spending will be increased by moving the total investment to 2.25% of the gross domestics product.
• To improve the educational infrastructure 36 billion pounds has been given to the state schools.
• An annual investment allowance of 50 thousand pounds will be announced for all business.
• National Minimum Wage and Working Tax Credit will be working in a collaborative manner to ensure a guaranteed income from work.
• UK budget 2007 ensures the country’s security further by giving 86.4 million pounds to the security agencies.
• To protect the environment the rate of fuel duty will be increased by 2 pence per liter.

Budget Surplus:

UK budget 2007 is anticipating a surplus of 11 billion pounds.

UK Budget 2007 Deficit:

To compensate the budget deficit the UK Government will have to lend 37 billion pounds which exceeds the previous year’s figure by 1 billion. The annual tax of 2007 will be extended by 2 billion pounds.