Budget 2015: Osborne unveils National Living Wage
George Osborn delivered his 7th budget as Chancellor, the first for a Conservative government since November 1996, unveils millions in tax cut but surprises with a compulsory national wage of £9 an hour by 2020.
*New national living wage will be introduced for all workers aged over 25, starting at £7.20 an hour from April 2016 and set to reach £9 per hour by 2020 – giving an estimated 2.5 million people an average £5,000 rise over five years. Low Pay Commission to advise on future changes to rates
* Inheritance tax threshold to increase to £1m, phased in from 2017, underpinned by a new £325,000 family home allowance
* Personal allowance, at which people start paying tax, to rise to £11,000 next year. The government says the personal allowance will rise to £12,500 by 2020, so that people working 30 hours a week on the minimum wage do not pay income tax.
* The point at which people start paying income tax at the 40p rate to rise from £42,385 to £43,000 next year
* Mortgage interest relief for buy-to-let homebuyers to be restricted to basic rate of income tax