The Budget: How the North East is affected

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

The Chancellor made the announcement during the budget.

The government say they will:

• 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.

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.

More money is to be invested in schools in the North.

The Chancellor annouced that £20 million a year of new funding in a 'Northern Powerhouse Schools Strategy.'

Sir Nick Weller will lead a report into transforming education across the so -called Northern Powerhouse.

The tax-free personal allowance is being raised to £11,500 with the Chancellor declaring 31 million people will be paying less tax.

1.3 million of the lowest paid taken out of tax altogether

A new "lifetime ISA" will be introduced for people under 40, the Chancellor announced.

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, George Osborne said.

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, Mr Osborne said.

He said it would result in a saving of £75 a year for the average driver.

Beer and cider duty will also be frozen.