The Budget helps deliver high quality public services

The Government will spend more on the services people care most about while maintaining firm control of public spending. Continuing growth of the Private Finance Initiative will improve efficiency throughout the public sector.

The Budget gives extra money to:

-the health service (1,600 Pounds million for patient services);

-education (an extra 875 million Pounds).

The Government will also continue to clamp down on its own running costs.

Buying services through the Private Finance Initiative brings high quality services at better value for money. Last year 1 1/2 billion Pounds worth of PFI deals had been agreed. That figure has now risen to more than 7 billion Pounds. Challenge funding will continue to foster partnerships between communities and the private sector by allocating funds on a competitive basis.

The Budget promotes responsible public finances

To maintain a world beating modern economy fit to compete in international markets, the Governments objective is to reduce borrowing and bring public spending down to below 40 per cent of national income (GDP).

The Budget helps to achieve this by:

-maintaining a firm control of public spending;

-reinforcing the downward path of borrowing.

The Government is set to meet its target of reducing public spending to below 40 per cent of GDP. Borrowing will fall from 31 1/2 billion Pounds to a forecast 26 1/2 billion Pounds.

The Budget changes some indirect taxes:

-the duty on spirits will be cut by 4 per cent;

-the duty on beer and wines will be frozen;

-insurance premium tax will increase from 2 1/2 per cent to 4 per cent;

-air passenger duty will go up from 5 Pounds to 10 Pounds for most flights within Europe and from 10 Pounds to 20 Pounds for flights outside Europe.

The Budget helps protect the ordinary taxpayer

Tax due should be tax paid. The Government is committed to securing the tax base in order to spend money on high quality public services while reducing the rate of income tax.

The Budget takes steps to achieve this by:

-increasing resources for the Inland Revenue;

-boosting the fight against social security fraud to make sure that taxpayers money is spent only on those in need;

-closing tax loopholes where they are being exploited to reduce tax bills;

-tackling a number of special reliefs and allowances which have outlived their purpose such as tax relief on profit related pay

The Budget helps business and enterprise

The Government is committed to business and enterprise. As well as a stable economic framework with low inflation and low interest rates, taxes on UK business are among the lowest of any G20 country.

The Budget takes further steps to improve the environment for business to grow and invest:

-the small companies rate of corporation tax will be cut from 24p to 23p helping 400,000 small firms to keep more of their own profits to invest as they choose;

-more than 1 1/4 million small properties (including 400,000 small shops) will have no increase in their rates bill next year;

-the VAT registration threshold will be increased in line with inflation

Words you may need:

lasting prosperity – тривале процвітання

sustained economic growth – стійке зростання економіки

inheritance tax – податок на спадщину

threshold – поріг

maintain – підтримувати

reinforce – посилювати

social security fraud – шахрайство в галузі соціальної безпеки

phasing out special reliefs and allowances - поступова відмова від спеціальних пільг та допомог

to be commited to – (тут) дотримуватися

to clamp down – придушувати, зменшувати

downward path – спадна тенденція

duty – мито

Inland Revenue – податкова служба

loopholes – лазівки

tax band – діапазон оподаткування

to tackle – (тут) братися (за вирішення чого-небудь)

b) Complete the following sentences:

1. The Budget boosts wage packets by ….2. The Government will spend more on the services ….3. The Government will also continue to clamp down on … 4. To maintain a world beating modern economy fit to compete in international markets, … 5. The Government is set to meet its target of reducing public spending to ….6. The Budget changes some indirect taxes: …7. The Government is committed to securing the tax base in order to ….8. The Budget takes steps to secure the tax base by: …

c)Complete the following prepositional phrases. Consult the text if necessary.

To phase ____ special reliefs; to spend more ___ the services; to improve the environment ___ business to grow; to go ____ from 5 Pounds to 10 Pounds; to increase resources ___ the Inland Revenue; to keep more of their own profits; to cut the duty ___ spirits; to clamp down ____ the costs of running business; to allocating funds ____ a competitive basis; to pay tax ___ the rate of only 20 per cent; to meet the target _____ reducing public spending; to take steps ____reaching this goal; to boost wages ____ 10%; to be commited ____ the same interest rate; to bring spending ____ to 5% against 8% last year; to expect an icrease ____ GDP; to go ___ rising year ___ year.