Indifferent news for motorists
For the seventh year in a row, fuel duty has been frozen at 57.95p per litre. This is small compensation though due to increases in crude oil costs influencing fuel prices, which have increased by 60% since January.
Universal tax credits
Possibly in response to criticisms following earlier tax credit reform, Parliament announced a reduction in the rate at which the credit will be tapered by 2% to 63%. It is estimated this will save low income earners £700 million by 2021/22.
Interest boost for savers
A new National Savings & Investment Bond will be on sale for 12 months from spring 2017 to provide three years of savings, at an indicative rate of 2.2%. The amount invested may be as little as £100 and as much as £3,000.
Increase to Insurance Premium Tax (IPT)
To fund other measures, IPT will increase by 2% to 12%, generating an estimated £855 million by 2021/22.
Research and Development (R&D)
The Government has announced a review of the tax environment for R&D to look at ways to build on the introduction of the 'above the line' R&D tax credit, to make the UK an even more competitive place for innovation in business.
Electric car charging points
To encourage more widespread use of electric powered vehicles, expenditure in the year of installation of charging points may be written off in full, against the taxable income of businesses eligible for capital allowances.