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| Budget 2015: Osborne seeks 'lower tax, lower welfare' UK | Budget 2015: Osborne seeks 'lower tax, lower welfare' UK |
| (35 minutes later) | |
| Chancellor George Osborne is promising a "lower tax, lower welfare society", as he prepares to deliver the first Conservative Budget since 1996. | Chancellor George Osborne is promising a "lower tax, lower welfare society", as he prepares to deliver the first Conservative Budget since 1996. |
| He will unveil his tax and spending plans to Parliament at 12:30 BST. | He will unveil his tax and spending plans to Parliament at 12:30 BST. |
| The BBC understands he will slow the planned pace of welfare reductions, taking three years - instead of two - to cut the budget by £12bn a year. | The BBC understands he will slow the planned pace of welfare reductions, taking three years - instead of two - to cut the budget by £12bn a year. |
| Measures on tax credits, inheritance tax, Sunday trading, social housing and tax allowances are anticipated. | Measures on tax credits, inheritance tax, Sunday trading, social housing and tax allowances are anticipated. |
| Measures expected to be in the Budget include: | Measures expected to be in the Budget include: |
| It is understood there will be a rise in the amount of money people can earn before paying any tax, while the threshold for the 40p tax rate will also be raised. | It is understood there will be a rise in the amount of money people can earn before paying any tax, while the threshold for the 40p tax rate will also be raised. |
| Measures restricting tax credits for families with more than two children are also anticipated. | Measures restricting tax credits for families with more than two children are also anticipated. |
| The cabinet has been briefed on the Budget's contents, in a meeting that lasted an hour and a quarter | The cabinet has been briefed on the Budget's contents, in a meeting that lasted an hour and a quarter |
| Mr Osborne told the cabinet it would put the UK "firmly on the path... to a lower tax, lower welfare society", the prime minister's official spokesman said. | Mr Osborne told the cabinet it would put the UK "firmly on the path... to a lower tax, lower welfare society", the prime minister's official spokesman said. |
| He also said the package of measures would ensure a "strong solid foundation to secure a better future" in the years ahead, the spokesman added. | |
| 'Merry-go-round' | 'Merry-go-round' |
| Before Mr Osborne gets to his feet in the Commons later, David Cameron will hold his weekly Prime Minister's Questions session with MPs, at noon. | Before Mr Osborne gets to his feet in the Commons later, David Cameron will hold his weekly Prime Minister's Questions session with MPs, at noon. |
| Ahead of the Budget statement, acting Labour leader Harriet Harman said the economy needed to be strengthened "but not at the expense of people being made worse off". | Ahead of the Budget statement, acting Labour leader Harriet Harman said the economy needed to be strengthened "but not at the expense of people being made worse off". |
| Mr Osborne is set to promise "bold" policies that will "secure Britain's future", when he addresses the House of Commons later. | Mr Osborne is set to promise "bold" policies that will "secure Britain's future", when he addresses the House of Commons later. |
| The Tories have not yet said where the bulk of the £12bn in welfare savings they have pledged to make will come from. | The Tories have not yet said where the bulk of the £12bn in welfare savings they have pledged to make will come from. |
| BBC political editor Nick Robinson said Mr Osborne would reveal the detail of the cuts, which would be phased in, with £8bn by 2017/8 and a further £4bn by 2018/9. | BBC political editor Nick Robinson said Mr Osborne would reveal the detail of the cuts, which would be phased in, with £8bn by 2017/8 and a further £4bn by 2018/9. |
| Analysis by Nick Robinson, BBC political editor | Analysis by Nick Robinson, BBC political editor |
| "Big. Very big." That's how one well-placed insider responded when asked to describe the Budget. | "Big. Very big." That's how one well-placed insider responded when asked to describe the Budget. |
| It ought to be. After all, this is the first Conservative budget in almost 20 years. The last was delivered by Ken Clarke in 1996. It has to deliver promises repeated for so long but yet to be delivered, like the cut to inheritance tax. | It ought to be. After all, this is the first Conservative budget in almost 20 years. The last was delivered by Ken Clarke in 1996. It has to deliver promises repeated for so long but yet to be delivered, like the cut to inheritance tax. |
| It has to fulfil the Tories' stated goals of cutting spending, cutting welfare and cutting tax whilst still claiming to be the "workers' party" pursuing a One Nation "we're all in it together" philosophy. | It has to fulfil the Tories' stated goals of cutting spending, cutting welfare and cutting tax whilst still claiming to be the "workers' party" pursuing a One Nation "we're all in it together" philosophy. |
| Read Nick's blog in full | Read Nick's blog in full |
| Tax credits are expected to be in the firing line, with David Cameron having promised to end the "ridiculous merry-go-round" of taxing low earners then handing them money back in benefits. | Tax credits are expected to be in the firing line, with David Cameron having promised to end the "ridiculous merry-go-round" of taxing low earners then handing them money back in benefits. |
| Tax credits are a type of welfare payment, introduced in 2003, that allow people to keep some of their benefits when they get a low paid job and are also paid to disabled workers and those responsible for children. They will be phased out and replaced by Universal Credit, which is designed to streamline existing benefits. | |
| BBC Newsnight understands tax credit entitlements will be reduced for families with more than two children. | BBC Newsnight understands tax credit entitlements will be reduced for families with more than two children. |
| The measure, which would apply to new families coming into the system, would save £1.4bn. | The measure, which would apply to new families coming into the system, would save £1.4bn. |
| The Conservatives have pledged to eliminate the UK's budget deficit by 2018. | The Conservatives have pledged to eliminate the UK's budget deficit by 2018. |
| Mr Osborne will also announce that the annual amount given to recipients of the highest military and civilian honours for bravery, the Victoria Cross and George Cross, is going to be increased to £10,000 a year. | Mr Osborne will also announce that the annual amount given to recipients of the highest military and civilian honours for bravery, the Victoria Cross and George Cross, is going to be increased to £10,000 a year. |
| Recipients have traditionally received an annuity, which was worth £2,129 last year. | Recipients have traditionally received an annuity, which was worth £2,129 last year. |
| The cost of the annual, tax-free award will be met using £3m in banking fines levied by the Financial Conduct Authority, the chancellor said. | The cost of the annual, tax-free award will be met using £3m in banking fines levied by the Financial Conduct Authority, the chancellor said. |
| Follow the Budget on the BBC | Follow the Budget on the BBC |
| BBC assistant political editor Norman Smith said the Budget would be more than an attempt to balance the books, and would seek to "redefine" attitudes towards welfare. | BBC assistant political editor Norman Smith said the Budget would be more than an attempt to balance the books, and would seek to "redefine" attitudes towards welfare. |
| "Much of the philosophy behind this Budget is meant to be 'don't stay on benefits, you are better off in work: pay will rise'," he said. | "Much of the philosophy behind this Budget is meant to be 'don't stay on benefits, you are better off in work: pay will rise'," he said. |
| Presenting his Budget, Mr Osborne will say "the greatest mistake" the UK could make would be to "think all our problems are solved". | Presenting his Budget, Mr Osborne will say "the greatest mistake" the UK could make would be to "think all our problems are solved". |
| "You only have to look at the crisis unfolding in Greece as I speak to realise that if a country's not in control of its borrowing, the borrowing takes control of the country," he will say. | "You only have to look at the crisis unfolding in Greece as I speak to realise that if a country's not in control of its borrowing, the borrowing takes control of the country," he will say. |
| For Labour Ms Harman said: "The Conservatives should be thinking about the economy as a whole, and every corner of the country, not the Tory backbenchers and their fortunes. | For Labour Ms Harman said: "The Conservatives should be thinking about the economy as a whole, and every corner of the country, not the Tory backbenchers and their fortunes. |
| "We don't want to see political tactics; we want a focus on making the economy work for everyone." | "We don't want to see political tactics; we want a focus on making the economy work for everyone." |
| The National Union of Students warned that plans to scrap maintenance grants, and convert them in to loans, would deter poorer students from going to university. | The National Union of Students warned that plans to scrap maintenance grants, and convert them in to loans, would deter poorer students from going to university. |
| The grants can be worth up to £3,000 a year. The changes the government is said to be proposing could save about £1.6bn. | The grants can be worth up to £3,000 a year. The changes the government is said to be proposing could save about £1.6bn. |
| But NUS president Megan Dunn said: "If grants are cut, it could mean the cost of student loans will go up for everyone or repayment conditions will get tougher than they already are. | But NUS president Megan Dunn said: "If grants are cut, it could mean the cost of student loans will go up for everyone or repayment conditions will get tougher than they already are. |
| "This is yet another unreasonable barrier to accessing higher education." | "This is yet another unreasonable barrier to accessing higher education." |
| Former Conservative Chancellor Ken Clarke - who delivered the last all-Conservative Budget, in 1996 - said Mr Osborne should prioritise putting "further constraints on excessive public spending" rather than cutting taxes. | Former Conservative Chancellor Ken Clarke - who delivered the last all-Conservative Budget, in 1996 - said Mr Osborne should prioritise putting "further constraints on excessive public spending" rather than cutting taxes. |
| He told Sky News that while he supported lowering the top rate of income tax to 40p, it would not be right to do it now for political reasons, as it would provoke "tedious rubbish about helping millionaires". | He told Sky News that while he supported lowering the top rate of income tax to 40p, it would not be right to do it now for political reasons, as it would provoke "tedious rubbish about helping millionaires". |
| Raising the tax thresholds - as Mr Osborne is expected to do - was a more sensible move, he added. | Raising the tax thresholds - as Mr Osborne is expected to do - was a more sensible move, he added. |
| How will you be affected by the chancellor's summer budget? Email haveyoursay@bbc.co.uk with your story. | How will you be affected by the chancellor's summer budget? Email haveyoursay@bbc.co.uk with your story. |
| Throughout the day, our team of experts will be on hand to help you make sense of the chancellor's statement. Send us your questions now. | Throughout the day, our team of experts will be on hand to help you make sense of the chancellor's statement. Send us your questions now. |
| Please include a contact number if you are willing to speak to a BBC journalist. | Please include a contact number if you are willing to speak to a BBC journalist. |