好色先生TV

5.15 - Budget tea-time summary

Here鈥檚 a round-up in case you haven鈥檛 been following today鈥檚 events. In general reaction from the construction sector has been fairly muted 鈥� no horrible shocks so far, but little of much substance to add to what Cameron set out on Monday. The construction industry likes the direction but wants more detail in order to know if the government鈥檚 aspirations will be delivered.

The main points are:

• The National Planning Policy Statement will NOT be published today. It will instead be made public on Tuesday next week, but the presumption in favour of sustainable development will remain
• Pension Infrastructure Platform to be set up 鈥� it has already raised 拢2bn to invest in infrastructure projects
• A 1p cut in Corporation Tax, beyond the 1p cut already expected
• The go-ahead for a 拢130m rail building programme in Manchester
• A  鈥榗ity deal鈥� for Greater Manchester that will permit it to claw back up to 拢30m per year to invest in infrastructure
• Councils will be able to bid for a share of 拢150m to finance development under the Tax Increment Financing mechanism
• Stamp duty relief on Zero Carbon Homes to be abolished, as part of a reform which will see a clamp-down on avoidance and a 7% levy on the sale of homes over 拢2m
• Increase the Growing Places fund by 拢270m, including 拢70m for the Greater London Authority
• A further 拢150m is to be invested in stalled housing schemes, as per Cameron鈥檚 announcement on Monday

4.51

John Cridland, CBI Director-General, said:

On corporation tax:

鈥淭he additional cut in the headline rate of corporation tax will help make the UK a more attractive place for companies to invest, do business and create jobs. It puts a rate of twenty per cent within our reach.鈥�

On changes to the 50p tax rate:

鈥淩educing the 50p income tax rate will send a clear signal that the UK is open for business. We must continue to encourage top talent to live and work in the UK.鈥�

On oil and gas tax relief, including for decommissioning oil rigs:

鈥淭oday鈥檚 announcements will give more certainty around decommissioning and new field allowances. This will unlock investment and help ensure our security of energy supply.

鈥淐ompanies will now look forward to seeing the detail of the gas generation strategy which must join the dots on the Government鈥檚 approach to energy generation and act as a positive signpost to investors.鈥�

On measures to support small and mid-sized businesses:

鈥淲e need to find new alternatives to bank lending so that small and medium-sized businesses can grow and create jobs.

鈥淭he Business Finance Partnership is an innovative way of matching previously untapped private finance with demand. Doubling the incentive under the enterprise management scheme will enable entrepreneurial, high-risk companies to motivate their staff. Increasing the government鈥檚 risk sharing under the Enterprise Finance Guarantee will make banks more able to boost small business lending.鈥�

On deregulation:

鈥淏usinesses, especially smaller ones, will be disappointed that the Chancellor did not do more to cut red tape. There needs to be much greater urgency to the Government鈥檚 deregulatory agenda. We must bring down the barriers to companies hiring staff and creating new jobs.鈥�

On the Carbon Reduction Commitment:

鈥淭he Government is wasting time by announcing yet another consultation on the Carbon Reduction Commitment, rather than getting on with scrapping this complex and bureaucratic scheme.鈥�

On carbon price floor:

鈥淭he 33% rise in the carbon price floor will hit UK energy-intensive businesses hard, and underlines the need for a more coherent strategy to unlock low-carbon industrial growth.

鈥淚n the meantime, we urgently need support to those companies most at risk from the increase.鈥�

On planning:

鈥淭he National Planning Policy Framework, and in particular the presumption in favour of sustainable development, will help to give businesses confidence to invest in critical local infrastructure when it is launched next week.

鈥淭he new planning framework should encourage local authorities to help boost growth while striking the right balance with social and environmental sustainability.鈥�

On Enterprise Zones:

鈥淭he new Enterprise Zones announced today will help support greater economic activity right across the UK. These new zones will encourage investment and give business a strong incentive to expand activity creating jobs in parts of the country that need them most.鈥�

4.43

The National Federation of Builders (NFB) welcomed some of the measures for business in the chancellor鈥檚 Budget Statement, but expressed serious concerns about the missed opportunities for using housing and construction to stimulate growth, particularly around stamp duty relief, the Get Britain 好色先生TV scheme, VAT on domestic energy efficient installations and lending to construction SMEs.

On Stamp Duty: Stamp duty relief, introduced in the 2010 Budget to give first-time buyers a step onto the property ladder, is being allowed to lapse.

Julia Evans, chief executive of the National Federation of Builders, said: 鈥淏y refusing to renew this relief, at a time when many are struggling to get on the housing ladder, the chancellor has effectively knocked out a step from beneath them.

鈥淚t is of no comfort for first time buyers that the chancellor is getting tougher on stamp duty avoidance among top earners, when for average earners stamp duty forms yet another barrier to buying their own home.

鈥淎 recent upturn in sales has been partly driven by people looking to take advantage of the concession and there is a fear that its abolition will lead to a slump in sales in an already fragile market. Given this risk and the fact that any increase in revenues to the Treasury is likely to be very modest, it is disappointing that the chancellor has chosen not to renew this relief.鈥�

On Get Britain 好色先生TV:The chancellor repeated the government鈥檚 拢420 million investment to keep the big builders building, adding 拢150 million to the fund.

Evans said: 鈥淭he Get Britain 好色先生TV scheme, which was designed to help unlock stalled sites of all sizes, has directed 40% of the fund to the large housebuilders which, judging from the financial results of some of the volume builders, are much less in need of funding than the smaller, lower-volume builders.

鈥淭he government鈥檚 focus on SMEs as a driver for economic growth does not appear to extend to housebuilding where schemes from the Homes and Communities Agency, which administers public money, favour the larger players.鈥�

On VAT: Currently, a reduced rate of 5% VAT applies to the installation of some energy saving materials and micro-generation systems which will be eligible for Green Deal financing, but not to others, leading to unnecessary complexity and perverse incentives.

Evans said: 鈥淚t is particularly disappointing that an opportunity was missed to harmonise VAT rates on the domestic energy efficiency installation, ahead of the Green Deal launch later this year.

鈥淩educing all energy efficiency measures to the lower rate of 5% would have been consistent with the government鈥檚 drive towards harmonising and simplifying the tax system, while at the same time acting to stimulate the market ahead of the Green Deal鈥檚 introduction later this year.

鈥淢oves to simplify and harmonise our hugely complex tax system are to be welcomed, but harmonisation that only ever goes one way, is just another word for a tax rise.鈥�

On lending: The real question on the 拢20bn National Loan Guarantee Scheme fund is whether it will simply enable SMEs already at the front of the queue to get cheaper loans (welcome as this is), or whether it will also support otherwise perfectly viable SMEs in sectors like construction, deemed toxic by the banks.

Evans said: 鈥淟ending to the construction sector remains depressed and construction SMEs find themselves at the back even of the SME queue. We hope that the scheme succeeds in its aims, but see no indication that it will. It also amounts to a significant admission of failure on the government鈥檚 part as it has already introduced mechanisms such as Project Merlin and the Enterprise Finance Guarantee scheme, designed to encourage the banks to lend to viable businesses. These schemes should have met the needs of businesses had the banks delivered on them, but they failed.鈥�

4.42

RIBA Head of External Affairs Anna Scott-Marshall said:

鈥淭he 2012 Budget underlines the importance of new development and infrastructure in kick-starting growth in the economy. City Deals, the introduction of TIF and the expansion of Enterprise Zones could equip cities with the necessary tools to help them develop and grow.

鈥淲hilst the RIBA welcomes the additional funding for the Get Britain 好色先生TV scheme, we urge the Government to ensure that developers and developments selected for funding meet the highest quality credentials so homebuyers benefit as well as house builders.

鈥淲e look forward to seeing the details of the NPPF when it is published and comes into force next week鈥�  

4.40

Mark Stewart, partner, EC Harris Energy Sector said:

Paving the way for a Pipeline of Gas?

鈥淲hilst the chancellor did not keep his promise from the previous Budget to adjust the carbon price support rates, what he did do was pave the way for thermal and gas to continue to take the lead when it comes to energy security in the UK.

鈥淲ith combined heat and power plants not liable to the carbon price floor tax, the door is open for new build plants to progress and alongside this, a green light was also given to gas with the recognition that 鈥榞as is cheap鈥�, a clear sign that it will be playing a role in UK energy mix for quite a while. We await further detail in the Autumn on what the new Strategy for Gas Generation will entail as the government strives to use the nations natural resources to keep the lights on.

鈥淲ith the announcement of a potential alternative environmental tax, abolishment of the Carbon Reduction Commitment could be on the horizon and if so it will be interesting to see if this does indeed bring with it more transparency and a simplified process to help companies comply.

What about Renewables?

鈥淚t was also clear that UK energy policy appears to focus on 鈥榗ost鈥�. What this means for the renewables industry, especially offshore wind, is that cutting costs is key if these forms of energy are to become a viable area for investment both for the government but also for the private sector.

鈥淭he Renewables industry will be hurting from this budget and will be feeling left out, with little or no reference to the expected support they were seeking and also need. It leaves a challenge for the industry to reduce cost in line with other generation technologies and by finding a way to address this, they may attempt to turn the chancellor鈥檚 head as he did announce that he will be 鈥榮taying alert to the cost of renewables鈥�. The door remains open but there鈥檚 clearly work to be done.

4.38

Mark Prior, Head of Transportation, EC Harris said:

鈥淭he positive news from today鈥檚 Budget was the confirmation that talks are ongoing with a dozen pension funds and the commitment to streamline the UK鈥檚 onerous planning process and remove many of the barriers that make it so difficult to get 鈥榮pades in the ground.鈥�

鈥淗owever, across each of the transportation sectors further detail is needed on the progress that has been made since last November and on how the projects outlined in the National Infrastructure Plan will begin to move forward over the coming months.

鈥淭he main news to emerge from the Chancellor鈥檚 address was a renewed focus on improving the rail network in the North of England. The move to create new rail links between Manchester and other cities across Lancashire and Yorkshire is welcome and will help to address the previous lack of investment within this part of the UK.

鈥淭his focus on better rail links aligns with the government鈥檚 previous assertion that investment in rail can help to underpin the wider growth agenda by creating jobs and facilitating better trade links.

鈥淓arlier this month the Secretary of State for Transport issued a new directive for rail policy following the end of the consultation on the findings from the McNulty review and whilst no additional detail was added to this, the Chancellor did allude to a new Transport strategy that will be launched by Justine Greening later this summer. This report should offer some insight into how big schemes such as Crossrail and HS2 will come together with the expansion of the Northern Hub to form an integrated UK rail network.鈥�

4.36

Stephen Hollowood, Senior Director at GVA said more radical initiatives needed and more clarity on policy was required.

He said: 鈥淭he Government鈥檚 drive to support infrastructure initiatives is positive. Economic growth and improving infrastructure are intrinsically linked so it was reassuring to hear. The package to unlock 拢1.2 billion of investment into Manchester was encouraging, and we welcome the additional 拢270 million within the Growing Places Fund.

鈥淗owever we don鈥檛 feel the Chancellor has fully considered the importance of providing stimulus to trigger wider development which is vital to the growth of the economy. We would urge Government to open serious positive discussion with other cities regarding similar deals to drive infrastructure provision and thereby encourage economic growth

鈥淣or has the Chancellor considered the importance of smaller projects to drive growth. We can not rest on our laurels by solely supporting flagship schemes. Cities must positively promote, as part of a comprehensive strategy, local development and infrastructure using new powers under the Localism Act and funding mechanisms in the Local Government Finance Bill to build upon these larger, catalytic schemes.

鈥淭he Chancellor touched on its planning reforms and gave final confirmation that it would be presented on Tuesday. The principles of the NPPF should be applauded. However while simplification of the planning system is needed, it is the lack of finance and appropriate levels of funding that continues to be the biggest obstacle. No matter how simple the planning system becomes that will not itself spark development and regeneration. Developers are crying out for access to finance on appropriate, commercially viable terms.

鈥淭he proposal to sell major new trunk roads and motorways to private sector investors to finance infrastructure improvements is an interesting proposal given the state of our public finances, and I look forward to reviewing the details. However our concerns over where the Government intends to source the money from to finance this initiative still stands. It mentioned twelve pension funds as a potential source. We need clarity on how this initiave should be delivered, if improvements in the growth of the national economy are not to be held back.鈥�

4.11

Dan Labbad, chief executive of Lend Lease in Britain, said: 鈥淭he Government鈥檚 clearly understands that investing in major infrastructure projects creates more jobs and more growth.鈥�

鈥淭he priority now should be to bring more of the schemes in the National Infrastructure Plan forward as quickly as possible. Progress on delivering the pipeline is still too slow and there is not enough visibility on what schemes will be going out to tender and when.鈥�  

鈥淚t is also essential that a successor to PFI is formulated quickly. Enabling major infrastructure projects which would otherwise be postponed or not built at all is a key area where decisive Government action could make a significant difference.鈥�

3.53

The Construction Products Association said the budget would not bring any significant short term benefit to a construction industry forecast to see output fall by 5% this year.

Chief executive Michael Ankers said that while the government clearly recognised the constraints on economic growth imposed by the poor quality of the nation鈥檚 planning and infrastructure system, there was some way to go before the benefits of planning reform and private finance for roads were realised.

鈥淲e welcome the direction of travel set by this budget, and the various announcements to support housing, rail investment, and development,鈥� he said.

鈥淏ut construction is facing a very difficult 12 to 18 months and these will not do much to change this.

鈥淲hat we would have liked to see is some of the additional savings made on current spending reinvested in capital projects that will not only provide a more competitive business environment for all businesses, but also create jobs throughout the economy.

鈥業t was particularly disappointing that the government once again failed to do anything to encourage investment in improving the energy investment in buildings, and the budget seems to have been developed in a vacuum as far as their claims to be the 鈥榞reenest government ever鈥� are concerned.鈥�

3.42

Richard Steer, chairman of construction consultants Gleeds Worldwide, said that as the budget鈥檚 contents had been heavily leaked the chancellor鈥檚 speech contained 鈥渘o real surprises鈥�.

鈥淲e should welcome enhanced rail investment for the civil engineering sector and some promised help for housing,鈥� he said.

鈥淭he cut in corporation tax looks good but [the chancellor] is still reducing tax allowances you get on purchasing plant, equipment and property - so [it鈥檚 a] typical 鈥榯ake with one hand and give with the other鈥� budget. Also, the allowance system is still horrendously complicated for those in business.

鈥淪adly there has once again been little or no real stimulus for the Green Economy. This was a missed opportunity.鈥�

3.35

Richard Threlfall, head of infrastructure, building and construction at KPMG, said that while infrastructure remained at the top of the political agenda in the budget, Manchester appeared to be the day鈥檚 biggest winner.

鈥淯nder the agreement with the Treasury, as the Manchester economy grows and generates additional taxes a proportion of these taxes can be used on local Manchester transport projects,鈥� he said.

鈥淭he city will reclaim 拢30 million a year from the Treasury and reinvest it in further infrastructure development, which could include new roads or light rail extensions. Manchester is the first city to secure such a deal and can we confidently predict the UK鈥檚 other major cities rapidly forming a queue at the Treasury鈥檚 door.鈥�

3.30

The Association for Consultancy and Engineering said the expansion of the Northern Hub rail programme and the development of ultra-fast broadband over 10 years could prove crucial to the economy.

Chief executive Nelson Ogunshakin said the decisions demonstrated the government had listened to industry and recognised infrastructure was a key driver of growth and employment.

鈥淲e must now see these announcements translate into delivery on the ground,鈥� he said.

3.22

British Property Federation director of finance Peter Cosmetatos said the 拢150m being made available for core cities鈥� Tax Increment Financing (TIF) projects from 2013-14 seemed like 鈥渧ery small beer鈥� after years of preparatory work about the potential growth that such an instrument could bring.

鈥淲hat isn鈥檛 clear is whether the 拢150m referred to represents the capital sum which can be invested in enabling infrastructure, or the element of total annual business rates revenues that the government is happy to see funding the annual financing cost of such investment,鈥� he said.

鈥淚f it鈥檚 the latter, that would mean more could be invested in infrastructure.

鈥淚t鈥檚 also disappointing that, 18 months after TIF was announced as government policy, we have yet to see any detail about how it will work, and we are only promised details 鈥榠n the coming months鈥� about how the government will decide which schemes get the go-ahead.鈥�

3.14

SmartNewHomes director Steven Lees echoed sentiment that failing to extend the Stamp Duty holiday for first-time buyers on properties priced under 拢250,000 was a missed opportunity, and said it was a move that housbuilders would have to compensate for.

鈥淎pproximately 150,000 new buyers benefitted from the tax break since the holiday began two years ago, which has enabled transactions all the way up the chain and helped keep the market moving,鈥� he said.

鈥淲e expect to see many more housebuilders stepping into the fold, continuing the Stamp Duty holiday and reducing costs as much as possible for first time buyers.鈥�

3.08

Royal Institute of Chartered Surveyors (RICS) chief economist Simon Rubinsohn said the National Loan Guarantee Scheme, more money for the Get Britain 好色先生TV Fund and streamlining the planning system would all help combat growing scepticism in the construction sector and the view that SMEs were being squeezed.  

But he added that introducing a new rate of Stamp Duty was a poor alternative to reforming the whole system on the part of Chancellor George Osborne.

鈥淏y replacing the slab structure with a marginal system, he could have ensured that those at the top end of the market contribute fairly as well as helping those struggling to get onto the property ladder,鈥� he said.  

鈥淟ondon is still the only region where more surveyors are reporting price rises than falls reflecting the growing north/south divide.  

鈥淲hilst credit-easing and the Get Britain 好色先生TV Fund will take effect immediately, other initiatives like infrastructure development will take longer to feed through.  

鈥淩ICS would have liked to have seen a reduction in VAT to 5% on all home, maintenance and repair work and a reinstatement of empty property rate relief up to 拢18,000 as immediate measures to generate jobs and growth now.鈥�

2.59

Federation of Master Builders chief executive Brian Berry lamented the chancellor鈥檚 failure to do more to restore customer confidence and spending in ways that could support the sector.

鈥淐onstruction SMEs need measures to reverse the contraction in the housing sector output before they can increase employment opportunities,鈥� he said.

鈥淭he government believes people are always looking to invest in their homes even in times of austerity, but back in December just 5% of construction SMEs expected work in the private housing repair, maintenance and improvement sector to pick up in 2012.

鈥淒espite this we are still waiting for details of how the 拢200 million Green Deal incentive fund will help boost early take up of the Green Deal finance packages.

鈥淭he chancellor also missed an opportunity when streamlining VAT to include a lower rate of VAT for Green Deal, which would be a useful incentive.

鈥淗omeowners and landlords need to know, just as much as the industry, what the total benefits will be of signing up for a Green Deal loan attached to their property. 鈥�

2.52

British Property Federation chief executive Liz Peace, chief executive of the British Property Federation praised the announcement of a review to reduce the burden of the CRC Energy Efficiency Scheme (CRCEEES).

鈥淲e would urge Government to rantionalise the fiscal element of the CRCEES and the Climate Change Levy into a simple retrospective tax on the carbon associated with building energy consumption,鈥� she said.

鈥淭he price of carbon under this tax could be set in consultation with the Committee on Climate Change.

鈥淭he implications of this proposal would be that much of the administrative burden associated with the scheme would be reduced. This approach would also ensure that participants are not required to make crude estimates of the number of allowances required in advance.鈥�

2.39

Campaign for Better Transport chief executive Stephen Joseph welcomed the Northern Hub rail upgrades but slammed planning reforms and the anticipated new toll roads as bad for growth and the environment.

鈥淭he chancellor鈥檚 continued support for toll roads and planning deregulation will lead to precisely the 鈥榗ar-dominated concrete grids鈥� that the prime minister denounced on Monday,鈥� he said.

鈥淩oad schemes, such as the Bexhill Hastings Link Road approved today, will simply generate traffic. 

鈥淭his budget was meant to set Britain on the road to recovery, but the concrete and congestion on offer from the chancellor will do nothing to solve the real problems in the economy.鈥�

2.34

On the announcement that the National Planning Policy Framework (NPPF) will come into effect next Tuesday, a spokesman for the Campaign to Protect Rural England, says: 鈥淲e heard yet more of the chancellor鈥檚 misguided and dangerous rhetoric on planning today. We will have to wait until next Tuesday when the final planning framework is to be published to see if the voices of reason in government will yet win out.

鈥淔rom the chancellor鈥檚 words we fear the longstanding protection for the wider countryside will be abandoned. On the basis of the budget statement, the government鈥檚 promise that the planning reforms are about empowering local people looks very hollow indeed.鈥�

Faraz Baber, London First director for policy, says: 鈥淭he chancellor said that the NPPF will be introduced with immediate effect. The question is whether that means there will be no transitional period in which local authorities can bring their plans up to date. Local authorities will feel at risk if they have outdated plans, but they have had since 2004 to get their plans in place.

鈥淭hey will however need resources to allow them to deal with the responsibilities that the NPPF, the community infrastructure levy and neighbourhood planning will bring. It鈥檚 important that the government comes forward with a decision about whether to let councils set their own planning fees. The private sector needs to be able feel confident that the public sector has the resources to deliver for them.鈥�

Richard Ford, head of planning at law firm Pinsent Masons, says: 鈥淐learly we await to see the detail of what 鈥榗oming into force immediately鈥� means. The presumption in favour of sustainable development and large parts of the NPPF may come into force immediately, but other parts could be subject to transitional provisions to give local authority local plans and neighbourhood plans a little breathing space. We will have to see if this is a bit of spin or not鈥�.

2.30

Network Rail chief executive David Higgins said the confirmation of 拢130m in funding for the Northern Hub project was 鈥渁 welcome show of confidence in rail鈥�.

He said the funding would cover the restoration and improvement of Manchester鈥檚 Victoria Station, provide some 700 extra trains a day, and allow for the doubling of capacity into the Trafford Park freight terminals.

鈥淭he Northern Hub will bring 拢4bn worth of benefits to the region and could create 20,000 to 30,000 jobs,鈥� he said.

鈥淚ncluding the costs of the new trains this is a return of 拢4 for every 拢1 invested.鈥�

2.12

Scottish 好色先生TV Federation chief executive Michael Levack said it was 鈥渉ighly regrettable鈥� that the Scottish Government鈥檚 pleas for 拢300m in funding for shovel-ready infrastructure projects had been ignored.

 鈥淲e believe this additional funding could potentially have boosted direct employment in the construction industry alone by up to almost 5,000 jobs,鈥� he said.

鈥淭here are some interesting ideas coming forward about leveraging private sector investment into road-building and other major infrastructure improvements in the future. But no sign in this budget of the immediate support the construction industry needs to get itself - and the wider economy - back on its feet.鈥�

2.06

Nicholas Leeming, business development director at property website Zoopla.co.uk, said that while it was difficult to argue against a clamp-down on Stamp Duty avoidance, policing it would be difficult.
He added that ending the Stamp Duty holiday for first-time buyers threw 鈥渁nother obstacle onto the tracks鈥� for people looking to take a first step onto the property ladder at a time when other factors preventing a surge of new buyers were starting to ease.

1.31

That鈥檚 me out - i have to write it all up for the magazine now! Initial reaction is that Osborne genuinely had much of his thunder stolen by the leaks in previous days - the speech clearly was supposed to build toward the 50p tax announcement. But, as ever, there鈥檚 plenty in it for everyone, and the devil will be in the detail of the budget documents. I鈥檓 handing over to my colleague Jim Dunton now, so keep emails and thoughts coming in.

1.30

Osborne says this last move takes two million out of tax altoghether. Osborne summing up now 鈥渨e鈥檝e tackled the problems head on - no do nothing budget. Together the British people will share in the effort and the rewards. This country borrowed its way in to trouble, and now we鈥檙e going to earn our way out.鈥�

1.29

Personal allowance. 鈥淭he best way to get money in to the pockets of those on the lowest incomes is to take them out of tax altogether鈥�. The largest ever increase in the personal allowance - to increase by 拢1,100. People can earn over 拢9,000 before paying any tax. 鈥渕illions of working people will be 拢220 better off every year鈥�

1.27

Now child benefit: benefit will be withdrawn when one income is over 拢50k, and the withdrawal will be gradual.

1.24

50p rate, above the 45p rate raises just 拢100m, 鈥渁 fraction of what told, maybe nothing at all,鈥� according to Osborne. 50p will be reduced to 45p, as expected. Osborne says: 鈥淲e鈥檒l be getting five times more money from the wealthiest in our society under today鈥檚 changes.鈥�

1.23

Report on evidence of the 50p tax rate. Osborne says 50p rate caused massive distortion. 拢16bn of income was deliberately shifted into the previous tax year. Only 拢1bn of the 拢3bn promised was raised.

1.22

Income tax rate of 50%. Osborne says it is the highest in the G20. 鈥渨idely recognised as harming the British economy.鈥�

1.20

As expected SDLT rate for properties will be moved to over 拢2m of 7%

1.19

Capital gains tax on properties held in residential envelopes. 鈥渋f you buy a property in Britain we will expect stamp duty to be paid. You have been warned.鈥�

1.19

A general anti-avoidance rule will be introduced. Consult on the details. Including stamp duty. Private companies selling homes over 拢2m will be charged at 15%

1.17

Here鈥檚 the personal taxation part - firstly anti-avoidance measures. Osborne: 鈥淚 regard tax evasion and aggressive tax avoidance as morally repugnant.鈥�

1.15

No changes on fuel duty - continuing

1.13

Sorry technical difficulties here - have a feeling i may have missed the announcement regarding the cut of the 50p rate for high earners to 45p. Am checking. on to usual fags and alcohol section鈥�

1.10

Headline rate of corporation tax will be cut further, from a planned move to 25%, to 24% - taking him ahead of his pre-existing schedule to reduce corporation by 1%.

1.06

Specific tax credits for pensioners to be phased out and normalised with normal tax credit level

1.04

Small firms to be taxed on the basis of cash going through their businesses, rather than be required to fill in full tax returns - if your income is less than 拢77,000. Helpful for white van man I think (not to mention freelance journalists鈥�)

1.03

Now the highlight for most people - tax. The system 鈥渉as moved far from its founding principles.鈥� He is calling for radical simplification.

1.01

Planning - here we go. The NPPF to be published next week after all. The policy comes into effect when it鈥檚 published on Tuesday - does this mean there will be no transitional arrangements? A shock, if so, and the conservation lobby, and councils, will be very upset indeed.

1.00

Budget so far fairly low key - as these things go. A jibe about 鈥淲allace and Gromit鈥� - presumably a reference to the shadow leadership team has done the most to get people excited. The Government benches love it.

12.58

Chancellor has moved on from construction and infrastructure to the film industry - and so far no mention of the NPPF. Will he not mention it at all?

12.55

Announcements running thick and fast now. I鈥檒l try to summarise:

• 拢70m development fund for growth and jobs in London
• An enterprise Zone for the Royal Docks in London
• Publication of the level of the carbon price floor for energy investments
• Combined Heat and Power plants not to be subject to Carbon levies

12.52

Osborne now moves to transport specifically. Confirms Cameron鈥檚 announcement about increasing airport capacity in the south East, and announces funding for Network Rail extensions to the Northern Hub project around Manchester. Jibes at Labour for poor transport investment in the North

12.50

Osborne says his is the first government to publish a National Infrastructure Plan - also mentions the pensions investment he promised in the autumn. Doesn鈥檛 mention the infrastructure plan was a Labour idea鈥�

12.47

Osborne announces he is expanding Get Britain 好色先生TV fund - not sure this is in addition to the 拢150m announced on Monday. Will try to check and get back.

12.45

Low interest rates 鈥渞eflect the confidence the market has in the UK鈥檚 ability to pay it鈥檚 way鈥�. Announcing a review raising prospect of issuing 100-year or unlimited Gilts.

12.43

Osborne announcement he intends to institute an automatic review of the state pension age - raising the prospect of further increases beyond those already announced

12.42

Will use Royal Mail pensions windfall to pay off debt

12.39

Borrowing this year 拢1bn lower than forecast in the autumn - 拢11bn lower over the next five years. Osborne says 鈥渞einforcing fiscal responsibility.鈥�

12.38

Deficit falling to 7.6% this year

12.37

OBR slightly revising up forecasts for the UK this year, with the UK economy having 鈥渃arried more momentum into the New Year鈥�

12.35

OBR revising down Eurozone growth to -0.3% for 2012. High risks for UK from this - but UK outlook broadly unchanged, the UK 鈥渨ill avoid a technical recession.鈥�

12.34

Says he鈥檚 backing industries - aerospace etc - but doesn鈥檛 mention construction. Yet.

12.31

He鈥檚 just stood up. First lines - it 鈥渦nashamedly backs business鈥�

12.30

Other moves i鈥檓 looking out for today are:

NPPF - will they or won鈥檛 they? The Independent says, not today. Most likely George will mention the presumption in favour today, but we won鈥檛 get to see the final documents until tomorrow or later in the week.

PFI - I鈥檓 hearing Osborne will make noises on the review of PFI, without giving anything away. Will be interesting to see the words鈥�

Allowable solutions - this is the tariff that housebuilders will have to pay when meeting their zero carbon targets. Today鈥檚 announcement could set a price for that carbon, and therefore give an idea how much they鈥檒l have to pay

12:25

I鈥檒l move on to covering the speech as soon as George Osborne stands, due at 12.30. So far David Cameron is still fighting with Ed Miliband in the weekly prime minister鈥檚 questions sanctioned brawl.

Any thoughts on any of this, please email me on joey.gardiner@ubm.com. The stories on stamp duty are probably the most significant of this morning鈥檚 crop. Feels like a way of covering for a socially regressive move (ie. income tax 50p band) by coming up with something that nominally targets the rich. Nevermind that stamp duty is a tax in serious need of serious reform, and the move could (at worst) damage the construction industry Gorgeous George is supposed to be helping. Do let me know what you think.

12:18

Good afternoon, Joey Gardiner here. Welcome to our coverage of the Budget 2012. If, like me you鈥檝e been astounded at the number of 鈥渟ecret鈥� and market sensitive budget announcements that appear to have been pre-briefed to the media this year, you鈥檒l be looking for a handy summary of what we already know - or think we know - coming in to today鈥檚 speech.

Helpfully, Noble Francis, the economics director at the Construction Products Association has been reading the newspapers even more closely than me, and provided this:

Economic and Fiscal Overview

• OBR growth revised marginally upwards to 0.8% for 2012
• Public sector borrowing likely to be revised down to 拢125 billion for 2011/12 & 拢120 billion for 2012/13

Industry

• Income tax 鈥� reduction in the 50p tax rate to 45p for income over 拢150,000 from April 2013
• Income tax 鈥� increasing personal allowances to 拢10,000 by 2015 (possibly 2014)
• Corporation tax 鈥� fall to 20% by 2014 (currently 26% and falls to 23% in 2014). Small business rate to stay at 20%
• Property tax 鈥� stamp duty tax on properties worth more than 拢2 million
• Fuel duty 鈥� August 3p increase postponed?

Lift restrictions on Sunday trading during the Olympics and the Paralympics

Investment

•  will provide up to 拢20bn over two years in loan guarantees for firms with turnover of less than 拢50m
• Commitment to work with power companies to build a new generation of nuclear power plants between now and 2030
• A 拢150m additional boost to new housing schemes on land where planning permission has already been granted
• Urgent auction of 4G spectrum, with the aim of it covering 99 per cent of the population
• Establishment of 10 鈥渟uper-connected cities鈥� with universal access to ultra-fast 100Mb broadband; four capitals and six other cities
• White paper on airport infrastructure

Remember this isn鈥檛 what we know - it鈥檚 what we think we know from all of the various leaks and pre-briefings that have been reported in recent days.

Coverage of the Budget will begin from 12.15.