The Budget: How the North East is affected

Chancellor George Osborne will set out £4 billion of spending cuts.

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New strategy for Northern Powerhouse schools

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


Plans to re-address the North South economic divide

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

Regional economic disparities have long been a problem, with London and the South East having higher growth than the UK average for decades.

The government is determined to rebalance the economy by building the Northern Powerhouse and the government’s devolution revolution is creating powerful elected mayors, allowing local governments to reduce and retain business rates, and giving local leaders across the country new powers and rewards for driving local growth.

– George Osborne

More money for 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.


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

Mr. Osborne delivering the budget for 2016 Credit: PA

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.

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