The Chancellor of the Exchequer, George Osborne, presented his Autumn Statement to Parliament earlier this afternoon.
The speech outlined ambitious plans to abolish the deficit, introduced a new tax on multinationals and also saw an overhaul of stamp duty.
Below are the 10 key takeaways from today's announcements, many of which are likely to be of interest to the UK tech industry.
1) "Google tax"
The Chancellor introduced a Diverted Profits Tax', designed to ensure large multinationals such as Amazon, Google and Starbucks pay their fair share of tax.
"Some of the largest companies in the world, including those in the tech sector, use elaborate structures to avoid paying taxes," Osborne told Parliament.
"Today I am introducing a 25 per cent tax on profits generated by multinationals from economic activity here in the UK which they then artificially shift out of the country."
Dubbed the "Google tax", it will come into force from April 2015 and is likely to require international co-operation to make it effective.
From "red to black"
The Chancellor outlined an ambitious plan to end the deficit.
By 2018/19 the UK is expected to have a surplus of 4 billion.
2) Encourage apprenticeships
The government wants to encourage businesses to employ young people, so from April 2016 businesses will be exempt from paying National Insurance contributions (NICs) for all but the highest earning apprentices aged under 25.
From April 2015, employers won't have to pay national insurance for employees under 21s either.
3) Investing in science
The government will invest 250 million in a new Sir Henry Royce Institute for Advanced Material Science in Manchester, with branches in Leeds, Liverpool and Sheffield.
Britain has also been selected to lead the next international effort to explore the planet of Mars, the Chancellor confirmed.
"And we back the brilliant work on ageing being conducted at Newcastle University and big data computing at Hartree.
"We're also committing to the industry of the North with investment in new high value manufacturing research."
' biggest ever sustained programme of investment in the research facilities of our scientific community.' pic.twitter.com/SgjedavDZKHM Treasury (@hmtreasury) December 3, 2014
4) Promoting post-graduate studies
The government wants to increase innovation by promoting education.
As such, post-graduate students will soon be able to borrow up to 10,000 to fund their studies.
"In 2010, the UK was ranked fourteenth in the Global Innovation Index. Today we are ranked second. But we aim to be the best," The Chancellor said.
5) Support for small businesses
The government has pledged to continue supporting small businesses. The high street discount' for 300,000 shops, pubs, cafes and restaurants will go up from 1,000 to 1,500, from April 2015.
Small Business Rate Relief will be doubled for the year ahead, meaning 380,000 of the smallest businesses will pay no rates at all.
6) Good news for house buyers
Stamp duty on house purchases has been overhauled and will come into force after midnight.
The rates you'll now pay when you purchase properties are:
- No tax on the first 125,000 paid.
- 2 per cent on the portion up to 250,000.
- 5 per cent up to 925,000.
- 10 per cent up to 1.5 million.
- 12 per cent on everything over that.
"As a result stamp duty will be cut for the 98 per cent of homebuyers who pay it," Osborne said.
7) Tax breaks
The tax-free personal allowance will be raised to 10,600 and tax on pensions upon death will also be scrapped.
Next year, the tax-free personal allowance, which was set to rise to 10,500, will rise instead to 10,600 #AS2014 pic.twitter.com/vwUXRs2mBOHM Treasury (@hmtreasury) December 3, 2014
The 55% death tax that currently applies when you pass an unused pension pot on to your loved ones will be abolished #AS2014HM Treasury (@hmtreasury) December 3, 2014
8) Airline tax breaks for children
From the 1st May next year, Air Passenger Duty for children under 12 will be abolished #AS2014 pic.twitter.com/AGmUeUNJBJHM Treasury (@hmtreasury) December 3, 2014
9) Connecting the North
The government has committed to investing 7 billion to create a "powerhouse" in the North.
Investments will be made in roads to reduce traffic jams, and trains with 20 per cent more capacity will be deployed to ease overcrowding.
HS3 will make east-west travel faster, and double the number of northern cities will benefit form the superfast broadband programme, according to the government.
10) More money for the NHS
As revealed before the statement, the government is to provide 2 billion of additional funding for frontline NHS services in England during 2015-16.
This is part of a multi-year 3.1 billion UK-wide investment in the NHS.
