£3bn of capital spending will be brought forward.

The money will be used to:

  • Increase capacity in the motorway network;
  • Improve and build new social housing;
  • Renew primary and secondary schools;
  • Invest in energy efficiency measures.

Empty properties tax relief

Temporary increase in the threshold for empty property relief. Empty commercial properties with a rateable value below £15,000 will be exempt from business rates.

Sustainability

  • An additional £100m and another £50m brought forward to help up to 60,000 more households insulate their homes.
  • £535m invested more quickly on energy efficiency, rail and environmental protection.

Housing and mortgage lending

Package of support worth £1.8bn, including:

  • An additional £775m this year and next to invest in thousands of new and modernised social housing and regeneration projects.
  • Plans for £100bn in government guarantees for banks’ new mortgage lending.

SMEs

£7bn package of measures, including:

  • Government to offer £1bn of credit via a temporary small business finance scheme.
  • Firms in difficulties will be allowed to spread their tax over a longer timetable.
  • Monitoring of banks receiving government funding, to ensure they maintain lending to SMEs at 2007 levels.
  • Increase in corporation tax deferred.
  • Scope of tax repayment system extended to businesses which were previously profitable but are now making losses, which enables them to receive tax repayments. Losses of up to £50,000 can be offset against profits made for the last three years, rather than one year as at present.

Larger companies

  • Exemption for foreign dividends in 2009.
  • Other taxation measures.
  • VAT cut from 17.5% to 15% until the end of 2009.
  • From April 2011 all rates of NI contributions, for both employees and employers, increase by 0.5%.
  • From April 2011 a new rate of income tax of 45% on income over £150 000.
  • Offset the VAT reduction by increase in fuel duty.

Source

Building Sustainable Design