July 2015 United Kingdom budget

2015 July United Kingdom budget

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)
Website	July 2015 Budget documents
‹ March 2015 2016 ›

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 is the first fully Conservative budget since that presented 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 pounds 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
• Benefits 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 ^[9]
• Confirmation that the BBC has agreed to absorb the £650m cost of providing free television licences for over-75s^[8]
• Non-domicile
  • 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

Receipts	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

References

1. "Budget 2015: Why are we having another Budget?". BBC News Online. 2015-07-02. Retrieved 2015-07-04.
2. "Budget 2015: Osborne offers country 'new contract'". BBC News. 8 July 2015. Retrieved 15 July 2015.
3. "Summer Budget 2015: Full text of George Osborne’s speech". The Spectator. 8 July 2015. Retrieved 15 July 2015.
4. "Budget 2015 summary and highlights: Everything you need to know". Daily Telegraph. 8 July 2015. Retrieved 15 July 2015.
5. "Summer Budget 2015" (PDF). p. 18.
6. http://www.publicwhip.org.uk/division.php?date=2015-07-14&number=44&display=allpossible&sort=name
7. "Budget: The Key Points You Need To Know". Sky News. 8 July 2015. Retrieved 8 July 2015.
8. "Budget 2015: Osborne commits to national living wage". BBC News. 8 July 2015. Retrieved 8 July 2015.
9. "The 2015 Summer Budget Review". [Business Sale Report]. 14 July 2015. Retrieved 14 July 2015.