2000 United Kingdom budget

The 2000 United Kingdom Budget, officially known as Budget 2000 - Prudent for a Purpose: Working for a Stronger and Fairer Britain was the formal government budget for the year 2000.[1]

2000 (2000) United Kingdom Budget
Royal Coat of Arms of the United Kingdom (HM Government).svg
Parliament52nd
PartyLabour
ChancellorGordon Brown
Total revenue£371 billion
Total expenditures£371 billion
Deficit£0 billion
Website[1]
Numbers are projections.
‹ 1999
2001 ›

BackgroundEdit

The millennium year witnessed Britain's major trading partners, particularly the US and several European economies, enter economic difficulties as part of the early 2000s recession. The dot-com bubble burst, though fallout in the United Kingdom was limited. During the autumn, UK fuel protests occurred due to rising petrol prices.

During 1999, net public sector debt stood at £364.4 billion, 34.3 per cent of GDP.[2][3]

Interest rates had showed greater stability in comparison to the previous year, rising from 5 per cent in June 1999 to 6 per cent in February 2000 where it remained for the rest of the year.[4] Inflation abated further during 1999 which recorded 1.3 per cent (CPI) and 1.5 per cent (RPI).[5][6]

Budget measuresEdit

The basic rate of income tax was to be reduced from 23 per cent to 22 per cent from April 2000. The married couple's allowance for under-65s and MIRAS mortgage interest relief was to be abolished from April 2000. Fuel duty was to be frozen in real terms. Excise duties on cigarettes were to increase by 5 per cent above inflation. Stamp duties were to be raised. Tax credits and income support were scheduled to be increased. Large increases in NHS spending were forecast. The climate change levy was to be reduced before its introduction in April 2001, with the concomitant cut in employer national insurance contributions instead limited to 0.3 per cent instead of 0.5 per cent.[7]

DetailsEdit

Tax RevenueEdit

Receipts 2000-2001 Revenues (£bn)
Business rates 16
Corporation Tax 34
Council Tax 14
Excise Duties 37
Income Tax 96
NI 59
VAT 60
Other 55
Total Government revenue 371

SpendingEdit

Department 2000-2001 Expenditure (£bn)
Debt Interest 28
Defense 23
Education 46
Health 54
Housing & Environment 14
Industry, Agriculture, Employment 15
Law & Order 20
Other 59
Social Security 103
Transport 9
Total Government spending 371

ReferencesEdit

  1. ^ "Budget 2000" (PDF). HM Revenue and Customs. Retrieved 4 July 2019.
  2. ^ "Net Debt (excluding public sector banks)". Office for National Statistics. Retrieved 4 July 2019.
  3. ^ "Net Debt (excluding public sector banks) as % of GDP". Office for National Statistics. Retrieved 4 July 2019.
  4. ^ "Official Bank Rate history". Bank of England. Retrieved 4 July 2019.
  5. ^ "CPI annual rate". Office for National Statistics. Retrieved 4 July 2019.
  6. ^ "RPI annual rate". Office for National Statistics. Retrieved 4 July 2019.
  7. ^ "Gordon Brown: a decade of Budgets". BBC News. Retrieved 4 July 2019.