davieG Posted 19 March 2014 Posted 19 March 2014 Summary from the BBC George Osborne has unveiled measures to boost the income of pensioners and savers hit by low interest rates. In his Budget speech, he made tax-free Isas more "generous" and unveiled a million new "pensioner bonds". The amount people earn before tax will also go up by £500 to £10,500. The chancellor also froze petrol duty, cut bingo tax from 20% to 10%, froze Scotch whisky and cider duty and cut a further 1p from a pint of beer - but put the price of cigarettes up. Labour leader Ed Miliband said he failed to mention in his speech that "the working people of Britain are worse off under the Tories, living standards down month after month, year after year". Measures announced in Mr Osborne's fifth Budget speech include: A scheme to boost exports - doubling the amount of finance available to £3bn An extra £140m for repairs and maintenance to flood defences and £200m for potholes Scrapping VAT on air ambulance services and inshore rescue boats Scrapping inheritance tax for members of the emergency services who "give their lives protecting us" A five-year cap on structural welfare spending from 2015, starting at £119bn and rising in line with inflation. It excludes pensions and Job Seekers Allowance Reform of air passenger duty so all long haul flights carry the same tax rate as currently charged for flights to USA. A new "garden city" at Ebbsfleet in addition to plans for 200,000 new homes Stamp duty on homes worth more £500,000 to rise to 15% for those bought by companies, as part of tax avoidance measures In a surprise announcement at the end of his 55 minute-long Budget speech, Mr Osborne said cash shares and Isas were to be merged into a single New Isa with an annual tax-free savings limit of £15,000 from 1 July. The limit for Junior Isas will be raised to £4,000. He also outlined a new Pensioner Bond paying market leading rates to be available from January to all people over 65, with interest rates of 2.8% for one-year bonds and 4% for three-year bonds. The cap on the amount of Premium Bonds a person can own will rise from £30,000 to £40,000 in June and £50,000 in 2015. The number of £1m winners will also be doubled. David Cameron and Danny Alexander enjoy a George Osborne joke In a move aimed at helping middle income workers, Mr Osborne said the higher rate income tax threshold will rise from £41,450 to £41,865 next month, and then by a further 1% to £42,285 next year. Mr Osborne also unveiled plans to support economic recovery - including tax breaks to boost productivity, exports and manufacturing. He said Britain was growing at a faster rate than any other advanced economy - revising growth forecasts up to 2.7% in 2014 - but he warned the job of recovery was "far from done". He told MPs: "We are putting Britain right but the job is far from done. This country still borrows too much, we still don't invest enough, export enough or save enough." He added: "This is a Budget for building a resilient economy. If you're a maker, a doer or a saver: this Budget is for you. "It is all part of a long term economic plan - a plan that is delivering security for the people of this country." New pound coin He said the Office for Budget Responsibility was forecasting that the economy would overtake its pre-crisis peak later this year. The deficit would be lower than expected this year at 6.6% - and he said the government was on track to post a surplus of 0.2% in 2018/19, according to the OBR forecasts. On the plans for a cap on welfare spending, he told a packed House of Commons: "Britain should always be proud of having a welfare system that helps those most in need. "But never again should we allow its costs to spiral out of control and its incentives to become so distorted that it pays not to work." There was some light relief as Labour's Ed Miliband and Ed Balls suggested the education secretary was "hiding" on the "naughty step" Michael Gove, who highlighted in a weekend interview the number of Etonians in the PM's circle, laughs at Labour's suggestion he had been banished David Cameron also seemed to enjoy the joke about his friend's choice of seat in the Commons In Michael Gove's defence, the Commons was packed, so he might not have had much of a choice of seat Mr Osborne insisted before the Budget that deficit reduction remained his number one priority, with the ultimate goal of delivering an annual budget surplus before 2020. Critics say he has missed targets and has borrowed billions more than originally planned in 2010. In the run-up to the Budget, the government announced plans to offer up to £2,000 in subsidised childcare to working families after the next general election, a proposed rise in the hourly minimum wage to £6.50 and an extension of the Help to Buy Scheme for aspiring homebuyers. Labour Leader Ed Miliband said families had become £1,600 a year worse off under the coalition - and he urged the chancellor to unveil measures to ease the cost-of-living crisis in his Budget speech. Labour has pledged that if it wins the next election, it will reinstate the 10p tax rate for low earners and raise the top rate of tax to 50p for those earning more than £150,000 a year.
Babylon Posted 19 March 2014 Posted 19 March 2014 Good stuff for savers, would just like the bloody interest rates to sky rocket again and I'll be laughing... booya.
Rocket-Ron Posted 19 March 2014 Posted 19 March 2014 Good stuff for savers, would just like the bloody interest rates to sky rocket again and I'll be laughing... booya. Yeah on a selfish issue I could do with rising interest rates..
Guest MattP Posted 19 March 2014 Posted 19 March 2014 Seemed a good budget on the whole, going a little bit too socialist at times (note to Dave, remember you are supposed to be Tories) but I don't mind him taking less tax of the working poor, it's a moral thing to do. If he does end up doing a Brown though and start bribing those on welfare to vote for him in early 2015 we'll have a problem. Nice to see him doing something for actual pensioners and savers, no one should be punished for working hard all their life and certainly not those who were financially responsible. Long ovedue scrapping of inheritance tax for members of the emergency services who lost life in line of duty and higher tax on flights to certain long haul routes not popular with British commuters. The Lib Dems achieve their top pledge and more from 2010 as well, cutting income tax by £700 and raising the tax-free allowance to £10,000 actually goes to £800 and £10,500 by the time they leave office. Duty on whisky frozen? The Jocks should have a referendum every year Anyone see Milibands response? I know it's hard to respond to a budget as you don't know a lot of what is coming up but it was appalling, been panned even by the BBC, a pre preapred class war speech that actually had nothing to do with the budget. Some real positives as well on a national scale, now the fastest growing economy among countries of our standing and for the first time in 35 years we have a higher rate of employment than America. (Though that's probably down to Obama as much as Osborne) Bad point is we still aren't clearing the deficit quick enough, though that will pale into insignificence compared to what it would be were Balls to end up delivering the usual litany of bribes and blueprint to fiscal disaster we will probably see in 2016.
Rincewind Posted 19 March 2014 Posted 19 March 2014 Bribe the electorate? Why would a politician do that?
Guest MattP Posted 19 March 2014 Posted 19 March 2014 Bribe the electorate? Why would a politician do that? Because we live in a selfish day and age, people can be bribed by a few free pints or fags for a vote even if they know people will suffer for it later on. Good budget for you though Ken, huge help for pensioners. Has George got your vote for next year?
DennisNedry Posted 19 March 2014 Posted 19 March 2014 Excellent budget for me and my family. - I and my mum are both on low wages, so will now not pay any income tax at all. - My dad is now just below the 40% tax bracket, so he'll save a lot of money. Keep it coming George! Milliband really had no answer in parliament in terms of practical alternatives. He just resorted to the same old tired rhetoric about the poor being worse off, even though the changes will help low earners.
purpleronnie Posted 19 March 2014 Posted 19 March 2014 1p off a pint??, mattp must either have friends in high places or maybe.........
Guest MattP Posted 19 March 2014 Posted 19 March 2014 Excellent budget for me and my family. - I and my mum are both on low wages, so will now not pay any income tax at all. - My dad is now just below the 40% tax bracket, so he'll save a lot of money. Keep it coming George! Milliband really had no answer in parliament in terms of practical alternatives. He just resorted to the same old tired rhetoric about the poor being worse off, even though the changes will help low earners. Miliband has to stick to that line now, he tried the austerity doesn't work, it will cause a recession etc and has been proved wrong, he's now gone for cost of living crisis and poor being worse off despite the fact it's obviously untrue to anyone who can read. Adam Boulton has tweeted the document Ed was given before the commons today, the bloke can't even think for himself, pretty much word for word what he came out with. Ronnie
purpleronnie Posted 19 March 2014 Posted 19 March 2014 Matt looks a bit gay in that Ronnie He is well dressed. I'd change that tie colour though.
Tielemans63 Posted 19 March 2014 Posted 19 March 2014 I see Ed Miliband made a twat of himself today. I know he doesn't get to see the budget beforehand but you would hope the opposition leader would have the intelligence to quickly dissect the info and spot any potential flaws. Instead he made an arse of himself by spouting age-old stereotypes about Tories being a party for the rich - from what I saw he didn't have a single constructive point to make about the budget he'd just been presented with. The guy just doesn't have what it takes imho.
Zingari Posted 19 March 2014 Posted 19 March 2014 He is well dressed. I'd change that tie colour though. It's not the clothes , I think it's the way you've put his head on at a sort of coquettish tilt. Only joking Matt , you look very handsome and dapper
purpleronnie Posted 19 March 2014 Posted 19 March 2014 It's not the clothes , I think it's the way you've put his head on at a sort of coquettish tilt. Only joking Matt , you look very handsome and dapper I had to google 'coquettish'.
Zingari Posted 20 March 2014 Posted 20 March 2014 I had to google 'coquettish'. Next time you see your redhead neighbour , tell her she's looking remarkably coquettish today . It never fails
hairy Posted 20 March 2014 Posted 20 March 2014 Budget 2014: HMRC can now take money directly from your bank account http://www.politics.co.uk/blogs/2014/03/19/budget-2014-hmrc-can-now-take-money-directly-from-your-bank If they think you owe them money, have written to you twice and made one call then they will take it! Knowing what a **** up they can make on the simplist of returns this is very concerning
Bellend Sebastian Posted 20 March 2014 Posted 20 March 2014 I've just listened to a half hour 'webinar' (that's the sort of word that makes people go on rampages) about the budget changes to inheritance tax, trusts and pensions. I demand the rest of March off
Captain... Posted 20 March 2014 Posted 20 March 2014 http://www.bbc.co.uk/news/uk-politics-26658742 Silly advert, and so blatant. http://www.bbc.co.uk/news/business-17442946 I'm going to be £237 better off apparantly, I'm now a Tory
ADK Posted 20 March 2014 Posted 20 March 2014 Normally you don't find out the bad bits until later. I'd expect a "good" budget though as we reach the important part of the election cycle.
Zingari Posted 20 March 2014 Posted 20 March 2014 http://www.bbc.co.uk/news/uk-politics-26658742 Silly advert, and so blatant. http://www.bbc.co.uk/news/business-17442946 I'm going to be £237 better off apparantly, I'm now a Tory Me too , so long as i continue to drink 500 pints of beer a week i'm laughing well probably giggling insanely actually
Parafox Posted 20 March 2014 Posted 20 March 2014 I'm looking at £250 better off. However, I will be paying more for my pension and only get a 1% pay rise so in real terms, it's less than 250, with inflation, and I will probably not notice the difference. Unless I stop drinking, then I'll be able to notice EVERYTHING!!!
bovril Posted 20 March 2014 Posted 20 March 2014 As a smoker I'll be worse off, but at least I'll look fvcking cool at the same time.
Jon the Hat Posted 20 March 2014 Posted 20 March 2014 I will be marginally better off in take home terms with increase in the high rate threshold and actually getting th benefit of the increase in the tax free allowance. Quite excited about the pension options - I can think of better things to do than buy an annuity.
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