The Financial Times has published an excellent synopsis of Alistair Darling’s much anticipated Pre-Budget Report.
Chancellor says measures are designed to make sure the slowdown is “shorter and shallower” than otherwise would have been the case.
Bank of England estimates bank losses could total $3,000bn.
Sharp reduction in global growth across the world, including the eurozone, the US, India and China makes this an ”unprecedented crisis”.
Restoring and maintaining financial stability ”crucial” to dealing with the crisis.
UK to take lead tackling global financial crisis with presidency of G20 next year.
The Financial Services Authority is looking at banks capital requirements in the wake of the crisis.
The financial crisis has highlighted problems with tax havens, and a review of the regulatory arrangements surrounding them has been commissioned and will report in the spring.
UK to take lead to tackle bank compensation arrangements.
By next month, UK banks will have access £100bn in capital under the government’s capital guarantee scheme.
Rights issue review group to review process for raising capital and make it fast and simple.
Inflation expected to continue to fall.
Monetary policy can’t stimulate the economy on its own.
IMF forecasting output to fall next year in all advanced economies.
UK output to fall in the first 2 quarters of next year.
Chancellor forecasts UK growth to fall between 0.75 per cent and 1.25 per cent.
UK economy to grow between 1.5 per cent and 2 per cent in 2010.
Chancellor to outline fiscal stimulous package of £20bn by 2010 or 1 per cent of GDP.
Current crisis means significant falls in tax revenue in short and medium term.
Government sets ”temporary operating rule” allowing it to borrow in order to fund public spending, rather than borrowing only to invest under the terms of the so-called ”golden rule”.
Chancellor plans to balance budget by 2015-16.
Borrowing to rise to £78bn next year and £118bn in 2009, representing 8 per cent of GDP.
Stamp duty take down 40 per cent this year.
Net debt to rise to 41 per cent this year, then to 48 per cent in 2009/10; 48 per cent in 2010/11; 53 per cent in 2011/12, peaking at 57 per cent of GDP in 2013/14.
Government to find £5bn of efficiencies savings from civil service over next three years.
Public spending round to increase spending by 1.2 per cent a year in real terms.
£3bn of capital spending will be brought forward from 2010/11 to this year to invest in schools, energy efficiency and social housing.
VAT to be cut to 15 per cent from 17.5 per cent until the end of 2009, effective from next Monday, December 1.
Income tax personal allowance temporary tax cut on 10p band - to be made permanent - and increased to £145 a year from £120.
Ceiling on tax relief given to people with pension funds up to £1.8m maintained until and including 2015/16.
From April 2010 all NIC rates to be increased by 0.5 per cent for employers and employees.
Starting point of national insurance aligned with income tax, so no-one earning under £20,000 per year to pay higher rate.
Incomes over £150,000 will be charged at the new rate of 45 per cent from April 2010.
People earning over £100,000 to have personal tax allowances brought into line with those on middle incomes.
Personal allowances abolished for incomes over £140,000 from April 2010.
Exemptions for foreign dividends for large and medium businesses from 2009.
Small and medium sized businesses to be allowed to spread business tax payments to help ease cashflow and credit constraints.
For 2009/10, empty commercial properties exempt from business rates if they have a rateable value under £15,000
Government has agreed £4bn loan from European Investment Bank for UK banks to help small and medium-sized enterprises.
Government to offer credit to small businesses via a temporary finance scheme offering loans between £1,000 and £1m to help ease cashflow constraints.
Government to defer increase in small companies corporation tax
Small and medium sized businesses to be able to offset losses of up to £50,000 against profits made over the last three years.
UK to set out detailed proposals to reduce carbon emissions in summer 2009.
Air passenger duty reformed into four band tax duty.
£100m in new money to help provide insulation in homes.
Ofgem to monitor relationship between wholesale and retail energy prices.
Government considering statutory powers to lower energy bills.
Government to invest £535m into energy and transport savings to help bring down carbon emissions.
“Renewables obligation”, requiring energy generators to use greener methods of production, extended.
Government to take measures to increase the flow of new mortgages.
Government to take steps to avoid home repossessions.
Measures being considered to help those in work and facing financial difficulties to remain in their homes.
Major lenders have agreed to take at least three months before initiating steps to repossess properties.
Government to provide new funding of £15m for the provision of debt advice on a nationwide basis.
Limit on mortgage interest scheme raised to £100,000 from £200,000.
Mortgage rescue scheme to be extended to cover those with second homes.
Overall housing support package worth $1.8bn.
Extra £775m for new homes and modernisation programmes for social housing.
Redundancy support scheme to be extended to cover more employers than just the largest, to cut time it takes those out of work to find new jobs.
Extended employment support measures worth £1.3bn in total.
New bands for vehicle excise duty to be phased in at slower rates.
Most polluting cars to see increases of up to £30 and less polluting cars will see lower increases or falls up to £30.
”Saving gateway” to help people on low incomes to build savings to add 50p to every £1 deposited.
State pension up £4.55 a week to £95.25.
Pensioner credit increase from £124 to £130 for individuals and from £189 to £198 for couples, from January 2009.
Child benefit increase brought forward to January from April.
Every pensioner to get bonus of £60 on top of Christmas bonus and couples will get £120.
Children to receive one-off £70 payment for Christmas
Alistair Darling completed the delivery of his pre-Budget report at 4.24pm