Budget 21/03/12

Discussion in 'Economics' started by DesktopCommando, Mar 21, 2012.

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  1. Thought I'd create this thread to contain all the others that will pop up today.
    Budget 2012: Chancellor George Osborne's Statement At A Glance | Business | Sky News [​IMG]
    Budget 2012: The Statement At A Glance

    he key points outlined by Chancellor George Osborne in his Budget statement to the House of Commons as it happened (it begins from the bottom of the page).

    :: Mr Osborne concludes by saying: "This country borrowed its way into trouble, now it's going to earn its way out".
    :: Raising the tax threshold will mean two million people will be taken out of tax altogether. "24 million people who earn less than £100,000 will gain from this measure," he said.
    :: He pledges "the largest ever increase in the personal allowance", increasing the income tax threshold by £1,100 from April 2013 to £9,205.
    :: Child benefit is to be withdrawn from families in which one parent earns more than £60,000. Some 90% of families will retain their child benefit, he said.
    :: "All sections of society must make a contribution to dealing with the deficit."
    :: OBR says "reducing [top] tax rate is reasonable"
    :: The top rate of tax will be reduced to 45p from April next year. Talking about abolishing the 50p tax rate Mr Osborne added: "No chancellor can justify a tax rate that raises next to nothing and damages our economy."
    :: "We've capped benefits, now it is right to cap tax reliefs too.":: 50p tax rate has "caused massive distortions"He said: "This tax rate is the highest in the G20."It is higher not just than the tax rate of America but also of major European countries like France, Italy, and Germany."It is widely acknowledged by business organisations and international observers as harming the British economy."
    :: There will be no change to pension tax relief for higher rate taxpayers
    :: Stamp duty on properties worth over £2m is going to increase to 7% from tonight
    :: Vehicle excise duty is being frozen for hauliers
    :: Fuel duty - the planned 3p rise in August will go ahead
    :: Online gambling - a tax is to be introduced based on where the customer is
    :: Duty on tobacco is to rise by 5% above inflation from tonight, putting up a packet of cigarettes by 37p. He said this will discourage people from smoking.
    :: Alcohol duty: the Governemnt will shortly publish its strategy on alcohol pricing but today there are no further changes to the rate.
    :: VAT exemptions to remain on food, clothes and books:: Tax evasion -anti-avoidance measures will increase Treasury revenues by £1bn:: Corporation tax to be cut by an additional 1% this April to 24%. It will be set at 22% by 2014.
    :: Osborne: We want a competitive business tax - there will be tax credits for businesses
    :: Tax returns to be simpler for three million firms
    :: Some 20 million people are to receive a new tax statement outlining how their money is spent.
    :: The basic state pension will rise to £5.30 a week
    :: There will be an automatic review of the state pension age
    :: Pledging a far simpler tax system, Mr Osborne said one million low paid people have been taken out of tax. He said we want "a modern tax system for the modern world".The Government is moving forward with a plan to integrate income tax with National Insurance and will also address loopholes in the VAT system, he said.
    :: Public sector pay will be "more responsive" to local situations
    :: Sunday trading rules to be relaxed for eight weeks over the summer during the London Olympics.
    :: Planning regulations are to be overhauled - a national framework will be published next week. "There will be a presumption in favour of sustainable development," he said.
    :: He wants the fastest broadband for 90% of the UK and the best technology infrastructure.
    :: There will be a new fund for TV production and video games:: Mr Osborne wants to turn Britain into Europe's 'digital centre'.
    :: There will also be significant investment in the medicines and drugs sector - £100m support for new research.
    :: There will be a huge boost for investment in the North Sea, including a £3bn new field allowance for large and deep fields to open up West of Shetland.
    :: Renewable energy to play crucial part in the UK
    :: There is to be more investment in London transport
    :: Roads, railways, clean energy and broadband networks will be prioritised by the National Infrastructure Plan
    :: UK gold reserves are now worth £11bn
    :: London to become new offshore centre for trading chinese currency
    :: Plans to pass on low interest rates to small businesses through the National Loan Guarantee Scheme are confirmed
    :: The Government will give an extra £100m for armed forces housing and 100% relief on council tax for armed forces overseas.
    :: The cost of operations in Afghanistan is £2.4bn lower than planned
    :: Welfare is set to rise to consume one third of all Government spending
    :: The Government's deficit reduction plan is on course
    :: Osborne: "There will be no deficit financed giveaways in this Budget"
    :: The growth forecast for 2013 has been revised down by 0.1% to 2%
    :: The OBR has revised up UK economic growth from 0.7% to 0.8% for this year
    :: The OBR expects the UK to avoid recession in 2012
    :: The Office for Budget Responsibility has revised eurozone growth down to -0.3%
  2. we are all in this together,

  3. I'm not
  4. So the country is in the shit, and all threepenny bit sucker can think of in at least 50% of his budget is squillionairs? All that puff and nothing to get the country back it's feet!
    Thank **** Browns not here giving all that money to the poor who in turn would spend there illicit dosh supporting UK business. Unlike those rich buggers who take with one hand and spend it if at all overseas
    Yep thank **** cocaine charlie is in charge
  5. How many retired arrsers are affected by the 'Granny Tax'

    Fiscal drag sound familiar?
  6. If that is ...

    Yes ... I will be ... I normally expect the unexpected ... but did not foresee that one .

    Some rumblings may occur as with the abolition of the lower rate of Income Tax removed by Brown . Viva Pensioner Power !

    Edited to add ... and you young'uns mark my words the next area to be looked at by this or future Governments will be an attack on th tax free lump sum option when you qualify for your Pension ... whatever the source .
  7. Getting rid of the 50p tax band is sensible. The amounts it raises are small, and makes us uncompetitive in the long term. Remember that paying 50% tax means you actually pay over 60 due to NI payments. Anyone in favour of the top rate tend to be envious. Fine. Be envious. Go and get a great job. Don't drag those who have succeeded down to your level.
    • Like Like x 1
  8. On a separate note, did anyone see the stuff relating to soldiers' accommodation and council tax?
  9. "Duty on tobacco is to rise by 5% above inflation from tonight, putting up a packet of cigarettes by 37p. He said this will discourage people from smoking." Fair one, it was expected as we smokers tend to use a lot of the NHS's faclilities.

    "VAT exemptions to remain on food". Should really have put a tax on Ginsters and Greggs, in fact any fast food emporium, especially as the fatties use as many of the NHS's services if not more than smokers!
    • Like Like x 1
  10. Yes, however seeing as many MSQ programmes have been delayed due to budget shortages it will hardly make an impact,

    As for council tax, you gain in one way & lose in another like the whole package, it's all about individual circumstances and how it's managed long term.
  11. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    VAT on hot prepared food is standard rated at 20%, if your local pie emporium tries to get around this by selling you a cold pie but provides a microwave to allow you to heat it up before you wend your merry way - they get hit with the VAT at 20% on providing a service that allows you to heat your pie.

    So all in all the Greggs purchasers of this world do get hit by the VAT take.
  12. Withdraw child benefit for those on 60k, if you get that much, you don't need it. He should also have stated that it is now classed as a loan and when the youngest kid is 16, steps will be taken to recover it from benefits at a %age each week.

    This may wake up the baby makers who have an easy life watching sky, drinking Stella and smoking cannabis, while I work 13 or 14 hour shifts.
    • Like Like x 1
  13. Double benefits for spouse in UK whilst forces on active service? If it works, nice one.

    HMRC site has not been updated at the time of writing.
  14. ok the first bit is readable now :)