Budget 2014 Summary
This Budget sets out further action to secure the recovery and build a resilient economy. The
government is continuing to take difficult decisions to put the public finances on a sustainable
path. The Budget supports businesses to invest, export, and create jobs, and cuts taxes for hardworking
people – laying the foundations for sustainable economic growth. The Budget sets out
the most radical reforms to saving for a generation, providing security for families to plan for
The UK has been hit by the most damaging financial crisis in generations and the government
inherited the largest deficit since the Second World War. The government’s long-term economic
plan has protected the economy through a period of uncertainty, and provided the foundations
for the UK’s economic recovery which is now well established. Since Budget 2013, economic
growth has exceeded forecasts, inflation is below target, and the deficit has been reduced
year on year. However, the job is not yet done and more work will be needed to tackle historic
weaknesses, including low productivity, poor skills and inadequate infrastructure.
Budget 2014 sets out the next steps in the government’s long-term economic plan:
The UK economy and public finances: the deficit as a share of GDP is forecast to have fallen
by a half by 2014-15 compared to 2009-10, and the Office for Budget Responsibility (OBR)
forecasts a small surplus by 2018-19. Budget 2014 announces further detail on the difficult
decisions needed to reduce the deficit and debt beyond this Parliament, including setting the
level of the welfare cap and controlling the cost of public sector pay and pensions.
Growth: a record number of people are in work and business investment is forecast to increase
this year. Budget 2014 sets out further action to help businesses invest and export, to reduce
energy costs – especially for manufacturers – and to increase housing supply.
Fairness: Budget 2014 delivers an income tax cut for 25 million people, with 3.2 million low
earners being lifted out of income tax altogether through increases in the personal allowance.
Budget 2014 announces radical reforms to give people greater freedom over how they access
their pension savings and to support savers at every stage of their lives.
Contains public sector information licensed under the Open Government Licence v2.0.