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Everything you need to know from the Budget

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16 March 2016 | Money Matters

From a new sugar tax to changes to schools, the Chancellor George Osborne has just laid out his financial plans for the coming months and years. Here's a compact, need-to-know guide to the Budget 2016.

1. New ISA will give savers a 25% boost from the government

Savers will be able to open a new Lifetime ISA from April 2017, and will receive a 25% bonus from the government.

Those who open an account between the ages of 18 and 40 will be able to save up to £4,000 a year - and receive a 25% government bonus on any savings made before their 50th birthday.

The money can be used for either a deposit on a first home worth up to £450,000, or a tax-free withdrawal can be made after your 60th birthday so it serves as a pension.

2. New tax on sugar

One of the most talked about changes announced was the new sugar tax.

This will be introduced on all fizzy soft drinks from April 2018 and is expected to generate £520 million in the first year, which will go towards school sports.

The hope is that the introduction of the tax will encourage companies producing fizzy drinks to reduce the amount of sugar in their products overall - leaving the likes of celebrity chef Jamie Oliver jumping for joy.

3. Fuel duty frozen

The price of fuel duty has been frozen for a sixth consecutive year, which is set to save the average driver £75 a year.

Fuel duty remains the largest component of the price of petrol and diesel, with buyers also paying a 20% VAT to keep their vehicles moving.

4. All schools will become academies by 2020 (or at least have plans to do so before 2022)

Mr Osborne has said that this plan is driven to “put the next generation first” and give them the best start in life.

This means local authorities running our schools will be a thing of the past.

5. Crossrail 2 will go ahead

The £27bn Crossrail 2 scheme has been given the green light by the Chancellor, who told MPs the Government regards it as the top priority transport scheme for London.

The route, which could be in operation by 2033, would connect suburban railway networks to the north and south of the city through a tunnel under central London.

Mr Osborne will set aside £80m to develop the plans, and ask Transport for London to allocate the same amount, with the aim of getting legislation to build the route in place by 2020.


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