The Bitesize Budget

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by: bythesea Total views: 14 Word Count: 598 Date: Mon, 31 May 2010 Time: 3:42 AM 0 comments

In his widely awaited annual Budget, the chancellor, Alistair Darling stood up today to deliver his final rallying cry to persuade potential voters to re-elect Labour in the looming general election.

This Budget was never going to be an easy one to deliver given the UK has only recently pulled out of recession and is struggling with growth, debt and unemployment. But someone had to do it. So has he saved you from financial ruin? Read on to find out.

First Time Buyers

Stamp duty scrapped on properties worth up to £250,000 effective now and for a two year period.

Savers

The new ISA limit increases to £10,200 from the new April tax year anyway, but going forward, ISAs to rise annually in line with inflation.

Cigarettes

Tobacco duty rises by 1 per cent above inflation effective now and then by 2 per cent above inflation for the next four years.

Alcohol Shocker

Cider duty rates will increase by 10 per cent above inflation while ALL alcohol duty rates will rise by 2 per cent above inflation until 2014-15.

Fuel

From April 2010, the main fuel duty rate increases one pence per litre followed by a further rise of one pence per litre on 1 October 2010 and by 0.76 pence per litre on 1 January 2011.

Bank Lending

Legal rights to be implemented to give everyone in the UK the right to a basic bank account.

Banks bailed out during the financial crisis - Royal Bank of Scotland and Lloyds Banking Group - to lend £105bn to homebuyers and businesses over the next 12 months.

A new small business credit adjudicator to be created with statutory powers to ensure small businesses are treated fairly when applying for loans.

Transport

An extra £84m to go towards funding roads damaged by the recent adverse weather and £250m towards the managed motorways programme and other transport projects in 2010-11.

Jobs and Training

The government is guaranteeing jobs, training or work experience for young people claiming Jobseeker's Allowance for six months or more.
Darling has also made changes to the Working Tax Credit for people aged over 60 if they work at least 16 hours a week, rather than 30 as currently.

Families

From April 2012, additional support will be given in the form of Child Tax Credit for families with a child aged 1 and 2 - equates to £4 per week.

Pensioners

£100 payment for households with someone aged 80 or over and £50 to households with someone aged over the female state pension age to be paid alongside the Winter Fuel Payment next year.

Other Taxes

Inheritance tax threshold frozen for four years.

One per cent increase in national insurance contribution rates from April 2011.

Fifty 50 per cent additional rate of tax on those with incomes above £150,000.

Economy

The economy this year is to grow by between 1 and 1½ per cent. GDP is then predicted to grow by between 3 and 3½ per cent in 2011, before rising to 3¼ to 3¾ per cent in 2012.
Borrowing by the government to fall to £163bn next year with borrowing expected to fall to £131bn in 2011-2012. Debt as a share of GDP will hit 54 per cent this year rising to 75 per cent by 2014-15.





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