CHANCELLOR of the Exchequer George Osborne today delivered his third budget of the Coalition government’s term so far, but how will the changes affect people in the Louth and Mablethorpe area?
Prime Minster David Cameron has pledged a ‘fairer’ deal for people on lower incomes, and incentives to get people back into work as well as measures to address the country’s debts.
Mr Osborne has predicted a growth of 0.8 per cent this year in the British economy, and a further two per cent next year, as well as a drop in inflation from 2.8 per cent to 1.9 per cent in 2013.
The unemployment rate is expected to peak this year at 8.7 per cent and fall to 6.3 per cent by 2016.
• One of the most contentious areas of change is the decision to scrap the 50p tax rate for the highest earners in favour of a 45p threshold from April 2013, the start of the financial year.
This coincides with an increase in the personal allowance any person can earn within a year before they begin paying income tax, this will be £9,205 from next April.
• The government has also answered calls to inclide a Personal Tax Statement in every wageslip, showing a breakdown of how much tax and national insurance they have paid and exactly what their deductions being spent on. This will come into force in 2014.
• Duty on tobacco will rise by five per cent above inflation, a rise of 37p on a pack of cigarettes, from 6pm today, Thursday, March 21. But no changes will be made to current duty rates on alcohol.
• The scheduled 3p rise in fuel duty in August will go ahead as planned, but Vehicle Excise Duty (car tax) will increase by inflation only and new private ownership and finance models will be considered for the nation’s road network.
• A new Stamp Duty Land Tax rate of seven per cent will be introduced for residential properties over £2 million from tomorrow, March 22.
• Armed forces members and their families will benefit from an extra £100 million of improvements in accommodation.
• The current pension system, where pensioners can receive an additional state pension as well as their basic pension, will be ‘made simpler’. This means that future pensioners will receive only one single-tier pension, based on contributions. This is currently estimated at around £140, and a full review into the state pension age will be published this summer.
• During the Olympics and Paralympics in London in the summer, Sunday trading hours will be relaxed.
• Finally, child benefits will withdrawn for households where there is one or more incomes of more than £50,000.
What do you think about the budget? How will it affect you? What more could be done?
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