The Budget 2016: What it means to you

George Osborne delivering this years budget Credit: PA

The Chancellor has delivered his budget for 2016.

What does it mean for you?

Here are the headlines:

Copies of the Chancellor of the Exchequer George Osborne's 2016 Budget Statement are seen in Westminster, Credit: PA

Plans to upgrade the A66 and A69

The Chancellor George Osborne has pledged to "upgrade" the A66 and the A69.

No details were given on any plans or costings.

The government will invest £20 million a year of new funding in a Northern Powerhouse Schools Strategy.

  • Boost investment to turn round performance in the toughest areas:

  • Bring in support from the best leaders and schools into these areas, empowering the best local heads and schools to become leaders of school improvement and increasing funding available for turnaround activities

  • Invest more funding to see the best academy chains expand and to develop new sponsors in the North

  • Create a new Northern centre of the New Schools Network

  • Look at further ways to get and retain the best teachers

  • Ask Sir Nick Weller to lead an in-depth report into transforming education across the Northern Powerhouse

The Chancellor has announced that the government wants to re-address the North South divide in the UK economy.

The Budget announced funding to improve local roads in the North.

  • £15 million will be allocated from the Pothole Action Fund to repair around 277,000 potholes during 2016-17.

  • The government also gave the go ahead to £24 million from the Local Growth Fund to improve roads across North Yorkshire.

More money for Northern flood defences

  • In order to fund increased investment in flood defences, the Chancellor has introduced a rise in the standard rate of Insurance Premium Tax (IPT) up to 10%.

  • If companies pass this onto customers, then George Osborne says the average combined home and contents insurance would only increase by £1, and the average motor insurance premium by £2 per year.

  • All the revenue raised from this increase will be invested in flood defences.

Corporation tax cut

The rate of corporation tax will be reduced to 17% by April 2020

It was 28% at the start of the last parliament and 20% at the start of the current session, he said.

The tax-free personal allowance is being raised to £11,500

The Chancellor says 31 million people will be paying less tax.

1.3 million of the lowest paid will be taken out of tax altogether

A new "lifetime ISA" will be introduced for people under 40

  • From April 2017, people can use them to save up to £4,000 each year until they are 50.

  • Mr Osborne said that for every £4 people save, the Goverment will give them £1.

  • The ISA limit will also rise from £15,000 to £20,000.

The rate of Capital Gains Tax will be cut

It currently stands at 28% but will now be cut to 20%.

Capital Gains Tax is a tax on the profit when you sell something that’s increased in value.

Fuel duty will be frozen for the sixth year in a row

Beer and cider duty will also be frozen.

Other alcohol duty will rise at the rate of inflation

The introduction of a new sugar tax

A new sugar levy on the soft drinks industry will be introduced, the Chancellor said.

It will be introduced in two years time and there will be two bands – one for total sugar content above five grams per 100 millilitres; a second, higher band for the most sugary drinks with more than eight grams per 100 millilitres.

Pure fruit juices and milk-based drinks will be excluded from the tax.

The Budget 2016 Credit: PA