Budget measures will help Scotland

The Chancellor of the Exchequer has delivered the UK Government's Budget today.

Derek Brownlee, Scottish Conservative Finance Spokesperson, said:

"The UK Government inherited a mess from Labour but has been able to set out a plan for economic growth which will create jobs.

"Labour's planned 4p fuel duty increase has now been cancelled –the cut in fuel duty will help families struggling with household budgets. Increasing the personal tax allowance will take more low-paid Scots out of taxation altogether. Scottish companies will benefit from the reduction in Corporation Tax.

"Many of the enterprise measures are devolved, and the Scottish Government will receive additional funding as a result. The Scottish Government should ensure that that funding goes towards measures to promote jobs and growth here in Scotland."

Measures announced by the Chancellor in this year's budget included:

1 penny per litre cut in fuel duty from 6pm tonight, abolition of Labour's fuel duty escalator and replacing it with a fair fuel stabiliser that increases tax on North Sea oil when production prices are high, and delaying inflation increases this year and next

A further increase in the personal allowance of £630 in April 2012, taking 260,000 more people out income tax and reducing the tax paid by 25m people by an average of £48, without creating any more higher rate taxpayers. Together with the £1,000 rise happening this April, that means a total of £326 extra each year. It means just ten months into office this Government has taken 1.1 million low paid people out of tax altogether.

An extra 1 per cent cut in corporation tax from April 2011, taking corporation tax from 28 per cent to 26 per cent. We have already announced future cuts which will take corporation tax to 23 per cent by 2014. To offset this for banks, the Bank Levy will be increased in January 2012. In every year of this Parliament our permanent Bank Levy raises more than Labour's one-off payroll tax of the last Parliament.

Below is information relating to Scotland:

• Additional provision of £112m has been made available to the Scottish Government as consequentials of increased spending by UK departments announced in the Budget;

• Increasing the personal allowance by £630 in April 2012 to £8,105. 2.19m taxpayers in Scotland will gain by £48 a year in 2012-13, and 21 thousand taxpayers will be taken out of tax altogether;

• The Government has formally submitted a derogation request to the European Commission for a rural fuel duty rebate pilot scheme;

• Creation of a High Value Manufacturing Technology and Innovation Centres to integrate the activities of a number of existing high performing centres, including in Scotland the Advanced Forming Research Centre in the University of Strathclyde; and

• 100,000 new places, through national-roll out, for a work experience programme for unemployed young people who have not worked before. An estimated 9,500 young people in Scotland could benefit from the programme.

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