2014 Budget
The chancellor George Osborne recently revealed his budget for 2014 and this will be pivotal for David Cameron to remain Prime Minister throughout 2015 after the General Election.
There were some very key points that George Osborne was very keen to raise, such as the United Kingdom’s growth rates being above those of the rest of the ‘rich world’. He is also keen to point out that our economy is recovering at a faster rate than was forecasted and that we as a country are ‘holding our nerve’.
The budget was clear in helping the ‘makers, doers and savers’ which most residents of the United Kingdom would class themselves as. Osborne also stated that, “In this budget we make sure hardworking people keep more of what they earn and what they save. Support for savers is at the centre of this budget”.
Key Points
1. Lower borrowing rates will mean that most Britons will save approximately £2000 in lower debt interest payments
2. The Bank of England’s inflation target of 2% has been renewed as the current inflation rate hovers at around this level.
3. The personal allowance on taxes, which is the point at which someone starts to pay tax has been risen from £10000-£10500 helping all of those earning over £10000.
4. There have been cuts on the tax on Bingo from 20pc to 10pc and those on betting terminals have risen to 25pc
5. As per usual, the tax on tobacco has been raised although not as much as expected as only a 2% increase above inflation rise will occur.
6. However, the usual increase in tax on Alcohol has not occurred and has in fact meant that Beer Duty will be cut by 1p, not a huge amount and you may be able to afford a free pint if you drink 1 every day for a whole year!
7. ISA’s limits have been increased to £15000 which can now be saved tax free, providing a huge benefit to those already saving in ISA’s who have cash to save more.
8. Annuities that used to cut down the value of pension funds have now been removed with pensioners now having access to their whole pension fund if they would like. This has led to the worry that some may be irresponsible with their money and may rely on the state later in life as people are living longer.
9. Under 21’s have now been taken out of an employer’s National Insurance contributions in an attempt to improve the employment rate in those under 21’s.
A variety of changes to the budget of 2013 have been implemented as the conservatives hope to hold onto government power and try to keep Scotland in the UK during their upcoming referendum.