03 July 1997
Brown unveils New Labour Budget
Petrol and diesel has gone up 4p a litre (18p a gallon), following
yesterdays first Budget from Labour chancellor Gordon Brown. Vehicle excise
duty will increase by the rate of inflation in November. Plans were announced to
cut excise duties for environmentally-cleaner commercial vehicles.
Brown also introduced new aid for the unemployed under the welfare to work
scheme. There was no change to income tax. The promised 10p starting rate of tax
will only be introduced when it is “prudent” to do so. He also announced plans
for a £75 a week subsidy for employers to take on a long-term unemployed
There will be a temporary doubling of capital allowances for small and medium
enterprises plant and machinery.
page 27 (Commentary), page 32 (Markets & Tempus)