Budget 2016: key points

George Osborne announced several measures in his budget this afternoon. They amount to cutting most taxes, transforming all state schools into academies, introducing a sugar tax but freezing other duties. Here are the key points you need to know.

Osborne will:

• Reduce corporation tax to 17 per cent by 2020. It was 28 per cent in 2010 and is currently 20 per cent
• Make business rates exemptions permanently available to firms with a rateable value of up to £12,000 and a tapered rate between £12,000 and £15,000.
• Reform the system of stamp duty on commercial property purchases: The new rates and tax bands will be 0 per cent for the portion of the transaction value up to £150,000; 2 per cent between £150,001 and £250,000, and 5 per cent above £250,000
• Abolish the carbon reduction commitment but the climate change levy will rise form 2019
• Cut in half supplementary charge on oil and gas 20 to 10pc and “effectively abolish” petroleum revenue tax
• Introduce £150m package to reduce homelessness and rough sleeping.
• Transform all state schools into academies, with extra funding provided to achieve this, and a national funding formula for the amount of cash per student place.
• Introduce a sugar tax, with two bands, from 2018. One for total 2 bands – total sugar content above 5g per 100ml, one for those above 8g 100ml.
• Retain the tampon tax.
• Freeze fuel duty for the sixth year in a row, 2016/17, as well as freezing beer and cider duty, as well as duties on other spirits
• Tobacco duty will continue to rise by 2 per cent above inflation.
• Abolish Class 2 National Insurance contributions for the self-employed, from 2018.
• Cut the higher rate of capital gains tax from 28 to 20 per cent and the basic rate from 18 per cent to 10 per cent.
• The tax-free personal allowance on income tax will rise to £11,500, and the threshold at which people pay the higher rate of income tax to £45,000, both by 2017.

The Chancellor also announced the introduction of a lifetime ISA for those under 40, to which the Government will contribute £1 for every £4 saved.

Osborne continued to list projects to encourage regional development and investment, including £1bn deal for the Cardiff region and devolving new powers to the Welsh Secretary, a new city deal for Edinburgh and halving tolls on the Severn crossings.

He continued to champion the National Infrastructure Commission, confirming projects such as HS3 between Manchester and Leeds and a commitment to Crossrail 2.