| Today the Chancellor of the Exchequer has set out his Budget. |
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| The measures announced will reduce the deficit, introduce a fairer tax system, and encourage an enterprise and growth agenda in the UK. These steps are based on the Government’s key values of responsibility, freedom and fairness. These measures include:
· To help areas and communities particularly affected by reductions in public spending make the transition to private sector-led growth and prosperity, the Government will create a Regional Growth Fund in 2011-12 and 2012-13. This fund will operate in England only and support proposals from private and public-private bodies that create sustainable increases in business employment and growth. · Confirmation of temporary increase in the level of small business rate relief (SBRR). Eligible businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from 1 October 2010. Businesses with rateable values up to £12,000 will receive significant reductions. 58 per cent of properties in the South East have a rateable value of up to £12,000, and will benefit from this measure if occupied by an eligible business. · The impact of the employer NICs rate rise previously announced will be largely reversed by increasing the threshold for employer NICs by £21 a week above indexation. This will lead to a saving of around £440 million in the South East. |
Eastern Region
The Chancellor of the Exchequer George Osborne and Chief Secretary to the Treasury Danny Alexander today announced details of how the next Spending Review (SR) will be conducted. The SR, due to conclude in the Autumn, will set spending limits for every Government department for the period 2011-12 to 2014-15.
The timetable for the review, the process and guiding principles that will underpin the Government’s approach to setting spending limits are set out in the Spending Review Framework presented to Parliament today.
Last year, Public Sector Net Borrowing was the largest in Britain’s peacetime history. The March Budget forecast the UK deficit to be 11 percent of GDP this year. According to the IMF, the UK has the highest deficit in the G7 and G20.
The Government has made clear that the bulk of the reductions in the current structural deficit will be achieved through reductions in spending. The Spending Review Framework sets out how the SR will:
. To ensure that resources are prioritised within tighter budgets, departments will be asked to prioritise their main programmes against a tough set of criteria to ensure value for money in public spending. The criteria:
• Is the activity essential to meet Government priorities?
• Does the Government need to fund this activity?
• Does the activity provide substantial economic value?
• Can the activity be targeted to those most in need?
• How can the activity be provided at lower cost?
• How can the activity be provided more effectively?
• Can the activity be provided by a non-state provider or by citizens, wholly, or in partnership?
• Can non-state providers be paid to carry out the activity according to the results they achieve?
• Can local bodies, as opposed to central Government, provide the activity?