|
2004 pre-budget report in Wales 2/12/2004
The Chancellor announced today a series of measures that promote productivity growth, flexibility and fairness, alongside high and stable levels of employment, in Wales. The Government's long-term goal is for the UK to achieve a faster rate of productivity growth than its main competitors.
Key announcements in the Pre-Budget Report include:
- an updated economic forecast, which shows that the UK economy is continuing to grow steadily and that the Government is meeting its fiscal rules for sound public finances over the economic cycle;
- a ten-year strategy for childcare;
- long-term plans for enhancing skills in the UK workforce;
- new measures to raise productivity by promoting an enterprise economy, including through plans to reduce red tape for business;
- further reforms to promote employment opportunity across the UK, including extra support for people on inactivity-related benefit who want to return to work;
- a number of measures to promote fairness in the tax system tackle tax fraud and avoidance, and protect revenues;
- a continued freeze in all road fuel duties.
Measures announced today which are particularly relevant to individuals and business in Wales include:
* An additional £38 million for the Welsh Assembly Government as a consequence of English increases including for local authorities, employer training pilots and childcare. It will be for the Welsh Assembly Government to decide how to allocate these sums.
* Implementation of the changes recommended by the Graham Review on the Small Firms Loan Guarantee represent a major deregulation and simplification of the scheme, with 314 firms in Wales typically benefiting each year.
* new legislation effective from today to remove the tax uncertainty for researchers involved in spin-off companies by university and public sector research establishment. Potentially benefiting the 13 Higher Education and Research Institutions in Wales.
* Incapacity Benefit - extending Pathways to Work Pilots including in two Jobcentre plus districts in Wales.
* The basic state pension will rise to £82.05 for single pensioners and £131.20 for couples from April 2005. 576,000 pensioner households in Wales are eligible
* Raising Pension Credit Guarantee element to £109.55 for single pensioners, £167.20 for couples from April 2005. 153,000 pensioner households are eligible.
* The child element of the Child Tax Credit will rise to £1690 a year from April 2005. 131,000 working families will benefit.
* from 2006-07 increase in the maximum share of childcare costs met in the childcare element of Working Tax Credit from 70% to 80% benefiting 14,000 families.
* £50 Council Tax and living expenses payment for the 70+ potentially benefiting 269,000 pensioner households.
|
|
|
