Budget 2016: Main things you need to know from George Osborne’s speech

By Andrew Liddle

March 16 2016, 2:00 pm

Numbers you need to know from the Budget 2016

George Osborne has announced major tax cuts for North Sea oil and gas companies in his budget today.

The Chancellor said he hoped the reductions in supplementary charges would help the “important and valuable” industry, which has struggled amid tumbling prices.

Mr Osborne – who said his budget was “for the next generation” – also confirmed a freeze in excise duty for Scotch whisky.

And he threw down the gauntlet to the SNP to use major new tax and spend powers.

Other major pledges include a tax on sugary drinks, a freeze in fuel and beer duty and a reduction in corporation tax.

Chancellor of the Exchequer George Osborne outside 11 Downing Street, London, before heading to the House of Commons to deliver his Budget

The key points of the budget are:

1) Good news for oil and gas

The supplementary charge for oil and gas producers has been slashed in half, from 20% to 10%. Petroleum Revenue Tax has also been abolished. Both tax cuts will be back dated to the start of this year in a bid to “back this key industry”. He said the cuts were only possible because of the “broad shoulders of the UK”. Read more here.

2) Government’s £500million sweet tooth

Sweet fizzy drinks had worse effects on health than merely promoting obesity, researchers suggested — soft drinks

A sugar tax to raise more than £500 million and tackle childhood obesity. Mr Osborne said the levy from “excessive sugar in soft drinks” would be used to invest in sport in schools. Milk and fruit drinks would be exempt from the levy, as will small producers, according to the Chancellor. Read more here.

3) The tax devolution

A “radical devolution” of tax and spend powers to put revenues “in the hands of local communities”. Mr Osborne hinted at a possible City Deal for Edinburgh. But he added that Scotland would be facing “the biggest budget deficit in the Western World” if it had voted for independence in the 2014 referendum.

4) No increase in petrol prices

Fuel duty has been frozen to “help working families” filling up their cars at the pump. He said the average family would save £75 as a result. Read more here.

5) Beer, cider and whisky in the duty freezer

Excise duty has been frozen for Scotch Whisky. The industry had called for a reduction in the duty. Beer and cider duty would also be frozen, Mr Osborne said, but other tax on other alcoholic drinks will keep pace with inflation.

6) EU-exit will put recovery at risk

It is less than 100 days until the vote on the UK's membership of the EU — It is less than 100 days until the vote on the UK’s membership of the EU

A vote to leave the EU would “put at risk” the recovery, Mr Osborne said. He said projections of growth over the next five years were based on membership of the common market and a vote to quit in June would create “uncertainty” and hit “consumer and business confidence”.

7) Blazing a trail where the world will follow

Coffee chain Starbucks said it paid 8 million pounds in corporation tax last year

Corporation tax will fall to 17% by 2020. Mr Osborne said the tax was “distortive and unpredictable”. He said Britain was “blazing a trail” by reducing it and he expected the rest of the world to follow.

8) New gym for Helensburgh and Faslane

A £5million investment for new leisure facilities in Helensburgh, for use by the local community and by members of staff at the nearby HMNB Clyde base at Faslane. Mr Osborne said he had been convinced by Scottish Conservative leader Ruth Davidson to build the facility.

9) £1 for every £4 saved by young people

Young savers will be offered a “lifetime ISA” from the Government to encourage them to save for the future. The Treasury will put £1 in to the account for every £4 saved. Read more here.

10) Tax free up to £11,500

The higher rate income tax band will rise to £45,000, fulfilling a Conservative party manifesto pledge. The personal tax free allowance has also been raised to £11,500.