Summary of Budget changes in IRRV areas of interest

Budget 2010 announces the following items (paragraph numbering refers to that in the Economic and Fiscal Strategy Report and Financial Statement and Budget Report):

Housing Benefit/ council tax benefit

5.14 The Government is considering responses to the recent Housing Benefit consultation and the emerging findings from the low-income working households research before setting

out reforms to improve fairness, address affordability, and strengthen work incentives. Meanwhile, the Government recognises concerns that the current approach to calculating

Local Housing Allowance rates has resulted in very high payments to a small number of tenants in the most expensive areas. As a prelude to further reform, Budget 2010 therefore

announces that, from October 2011, the highest rents across the country, including the most expensive 8 per cent of properties in London, will be excluded from the calculation of

the Local Housing Allowance in each area.

5.19 The Government also announces a package of measures to further support parents, and help individuals enter and progress in work, including:

•from April 2011, guardians who receive special guardianship payments will not see their Housing Benefit or Council Tax Benefit reduced to take these payments into account, bringing these payments into line with the treatment of child maintenance;

A.14 As announced at the 2009 Pre-Budget Report, from 6 April 2010, all elements of the Working Tax Credit (WTC), with the exception of the childcare element, will increase by 1.5 per cent. The disregard for the WTC in Housing Benefit will also increase by 1.5 per cent. (al)

A.38 As announced at the 2009 Pre-Budget Report, a package of administrative reforms to Housing Benefit will be introduced from April 2010. In addition, Housing Benefit reforms previously announced at Budget 2009 will be delayed until April 2011. (aq)

A.185 As announced at Budget 2009, from April 2010 rules on how Housing Benefit and Council Tax Benefit overpayments that result from customers changing address within the same local authority area, will be rationalised so there is no longer double payment. (c)

A.186 As announced at Budget 2009, from 2010-11 a change in the earnings limit in Housing Benefit and Council Tax Benefit for those undertaking permitted work on Incapacity Benefit and Severe Disablement Allowance will be made, so that these earnings limits equal that for income-related Employment Support Allowance. (d)

Business Rates

4.3 Alongside Time to Pay and the bank lending commitments agreed for 2010-11 and set out in Chapter 3, a number of measures were extended in the 2009 Pre-Budget Report to

support business through the recovery, including:

•Empty Property Relief (EPR): as announced at 2009 Pre-Budget Report, the temporary increase in the threshold for EPR will be extended to £18,000 for a further year, continuing the exemption from business rates for an estimated 70 per cent of empty properties in 2010-11.

4.19 To provide help with the fixed costs of starting and running a small business, the Government will fund a temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October. In addition, small businesses benefiting from the rate relief taper (rateable values up to £12,000) will receive significant reductions. It is estimated that over half a million businesses across England will benefit, many by well over £1,000. Around three quarters of all small business units, two thirds of smaller shops and over half of offices and smaller industrial premises will qualify if occupied by an eligible business.6

4.66The Government will support investment in infrastructure in our cities and other centres of growth through an Accelerated Development Zone (ADZ) pilot programme. The pilot schemes will be introduced in locations across England in 2011-12. Combined authorities, as they are agreed, and selected local authorities, will receive capital grant funding to a total of £120 million to help support projects that deliver key infrastructure and commercial development to unlock growth. The Government will assess the impact of the investment on business rates growth within the defined ADZ area to further understand the case for introducing Tax Increment Financing.