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Budget 2016

George Osborne MP has delivered his budget for the next financial year. The tolls on the Severn Crossings will be halved from 2018, a new 'lifetime ISA' is being introduced and flood defences will be given a £700million boost.

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Port Talbot Waterfront Enterprise Zone created to boost local economy

Wales Economy Minister Edwina Hart has announced the establishment of the Port Talbot Waterfront Enterprise Zone to help create economic growth and jobs for the area recently hit by steel job losses.

Credit: PA

Yesterday Chancellor George Osborne announced in his budget that ministers in London will work with those in Cardiff to create the enterprise zone.

It'll offer financial incentives to companies based there, including tax and business rate breaks, and was one of the key actions to come out of the Tata Steel Task Force to help support the steel industry.

The recent announcement of job losses at Tata in Port Talbot is the latest blow to the steel industry in Wales.

As such a major employer this will have a knock-on effect for the local economy and we are determined to do all that we can to support the area and the local supply chain.

We will deploy a range of incentives for existing and new business in the Zone, and today I am announcing a targeted Business Rates offer for qualifying businesses for the coming financial year.

Also, following very productive discussions with HM Treasury, the Chancellor announced in his Budget yesterday the offer of Enhanced Capital Allowances for the Zone, subject to agreement with my officials on the boundaries.

This is a very welcome development and will make the Enterprise Zone more competitive and be a strong incentive for new investment.

– Edwina Hart, Minister for Economy, Science & Transport

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Here are some of the highlights from Osborne's budget

Credit: PA Wire

George Osborne has delivered his budget for the next financial year.

Here are a few of the highlights:

  • Lifetime ISA - from April 2017, people under 40 will be able to pay up to £4,000 a year into a 'lifetime ISA.' For every £4 saved, the Government will add £1,
  • Increase in tax-free allowance - tax-free personal allowance is being raised to £11,500,
  • Severn Crossing tolls - the tolls on both bridges will be halved from 2018,
  • Fuel duty - frozen for sixth year in a row,
  • Alcohol duty - frozen on beer, cider, whisky and other spirits,
  • Sugar tax - a new sugar levy on the soft drinks industry will be introduced in 2018 to ensure companies reduce the sugar content of drinks and promote low sugar brands,
  • Flood defences - flood defences will be boosted with £700 million of funding.

Severn Crossing tolls set to be slashed in half from 2018

Credit: Barry Batchelor/PA Archive

Tolls on the two Severn Crossings are to be halved from 2018, Chancellor George Osborne MP has announced in his budget speech.

It currently costs £6.60 for cars, £13.20 for small goods vehicles and small buses and £19.80 for heavy goods vehicles and buses.

The news will be welcomed by commuters and businesses alike.

Read more: Severn Crossing tolls to increase from January 1st

The Federation of Small Businesses Wales (FSB) policy chairwoman Janet Jones claimed the reduction in charges would result in an uplift of confidence among businesses.

A wide variety of our member businesses regularly use the Severn Crossings, and a study from the Welsh Government suggests that the tolls cost more than £100 million each year in lost trade.

This cut will have a positive impact for many small businesses, reducing the cost of trading across the Welsh border and boosting confidence among small firms both sides of the border.

– Janet Jones, Federation of Small Businesses Wales

The Chancellor announced last year that tolls for cars and vans would be reduced to £5.40 in 2018. The tolls will not be subject to VAT when the two bridges come back into public ownership in 2018.

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