BROWN'S SUPER BUDGET FOR NHS; Extra billions for hospitals.Byline: NEIL HODGSON Neil Hodgson (born November 20 1973 in Burnley, Lancashire) is a motorcycle racer who won the 2000 British Superbike championship and the 2003 Superbike World Industry Reporter GORDON Brown this afternoon announced an annual pounds 105.6bn would be spent on the National Health Service by 2007. In his budget speech the chancellor revealed the government would invest pounds 72.1bn next year rising in stages over the next five years to pounds 105.6bn. It was a real term rise of 43% and would make up almost 10% of the national budget. It was a doubling of spending on the NHS NHS abbr. National Health Service NHS (in Britain) National Health Service since 1997. It would be paid for in part by a 1% rise in the national insurance contributions by employees, employers and the self employed, he revealed. At the same time he froze froze v. Past tense of freeze. froze Verb the past tense of freeze froze, frozen freeze duty on fuel, car tax and alcohol. But he announced a 6p rise on a packet of 20 cigarettes. For punters, he confirmed that taxfree betting would be extended to bingo. And for real ale drinkers, he announced tax breaks for small breweries and pubs, cutting the duty on their pints by 14p in time for the World Cup this summer. From October working families with children are to have guaranteed income of pounds 237. Couples with no children in full time work were to be guaranteed pounds 183 a week and single person pounds 154. He announced pounds 2.5bn of help for families in the form of tax cuts. He said Britain had enjoyed the lowest inflation and interest rates for 40 years. "For the first time in half a century unemployment is lower than America, Japan and the rest of Europe, " he told Parliament. He set an inflation target of 2.5% and an economic growth target of 22.5% in 2002/03, rising to about 3% by 2004/05. Britain has paid pounds 37bn of debt between 2000/01, he reported. He pledged to create stability to avoid the "boom and bust In economics, the term boom and bust refers to the movement of an economy through economic cycles. The Boom-Bust economic cycle According to most economists, an economic boom is typically characterized by an increased level of economic output (GDP), a corresponding " era of the 1980s and early 1990s. Maintaining his reputation as a "prudent" chancellor he said the budget surplus of pounds 3bn this year would grow to pounds 7bn, pounds 9bn and pounds 7bn in the coming three years. He also delighted Europhiles by confirming the Treasury was assessing the five criteria to enter the Euro currency. He confirmed tax credits to help research and development budgets for companies which he announced last year. Help for small business came with a cut in small firms corporation tax from 20p to 19p and news that small firms with profits below pounds 10,000 will pay no corporation tax. He also simplified VAT payments for small businesses, which he said was responsible for providing 55% of UK employment. Automatic recovery of VAT on bad debts after six months is another new move by the chancellor to help small firms. Environmental changes are encouraged by abolishing climate change levy The Climate Change Levy (CCL) is a tax on energy delivered to non-domestic users in the United Kingdom. Its aim is to provide an incentive to increase energy efficiency and to reduce carbon emissions, however there have been ongoing calls to replace it with a proper carbon tax. on green electricity. He is also to cut excise duty on the least polluting pol·lute tr.v. pol·lut·ed, pol·lut·ing, pol·lutes 1. To make unfit for or harmful to living things, especially by the addition of waste matter. See Synonyms at contaminate. 2. vans, cars and motorbikes. CAPTION(S): BUDGET: The chancellor delivers his speech today |
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