The Budget

[enaid]

http://www.parliamentlive.tv/Main/Pl...meetingId=6378

[Amethyst]

Re: The Budget

I'm actually quite worried. Hope he deals with the tax credit issue early on, before windfarms !

[natweststaffmember]

Re: The Budget

VAT up to 20% from 4th January 2011

[enaid]

Re: The Budget

Budget key points: At-a-glance



Chancellor George Osborne is delivering the Conservative/Lib Dem government's first Budget. The key points will be added below from 1230 BST:
TAX

From January 4 2011, the main rate of VAT will rise from 17.5% to 20%. Current zero-rated items like children's clothes and magazines will remain exempt.
Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%. The small companies' tax rate will be cut to 20%.
The government will help low-spending councils in England to freeze council tax for one year from April 2011.
Capital Gains Tax remains at 18% for low and middle-income savers but from midnight, higher rate taxpayers will pay 28%.
UK ECONOMY

The economy is predicted to grow by 1.2 % this year, 2.3% next year, 2.8% in 2012, 2.9% in 2013 and 2.7% in both 2014 and in 2015.
The UK is set to miss the previous government's "golden rule" - of borrowing only to invest over the economic cycle - in the current cycle by £485bn.
Consumer price inflation is expected to reach 2.7% by the end of 2010 before "returning to target in the medium term". The inflation target remains at 2%, as measured by the Consumer Prices Index.
Unemployment is forecast to peak this year at 8.1% and then fall for each of the next four years, to reach 6.1% in 2015.
BORROWING

The structural current deficit "should be in balance" by 2015-16.
The balance of spending cuts vs tax rises would be 77% to 23%.
The measures are forecast to result in public sector net borrowing of £149bn this year, £116bn next year, £89bn in 2012-13 and £60bn in 2013-14. Mr Osborne said by 2014-15 borrowing would reach £37bn, falling to £20bn in 2015-16.
SPENDING

Mr Osborne said the state now accounted for "almost half" of all national income which was "completely unsustainable".
He said current expenditure would rise from £637bn in 2010-11 to £711bn in 2015-16, blaming a "rapidly rising bill for debt interest".
He said his Budget implied further £17bn cuts in departmental spending by 2014/15, unprotected departments face an average real cut of around 25% over four years.
He said compared with the plans set out by Labour, the government would cut additional current expenditure by £30bn a year by 2014-15.
There would be no further reductions in capital spending totals in this Budget but "careful choices" would be made about how it was spent. Projects with "a significant economic return to the country" would be prioritised - assessed in the autumn spending review.
PUBLIC SECTOR PAY

Public sector workers face a two-year pay freeze, although 1.7 million of those earning less than £21,000 will get a flat pay-rise worth £250 in both years.
PENSIONS

The government will accelerate the increase in state pension age to 66.
BENEFITS

Child benefit will be frozen for the next three years.
Tax credits will be reduced for families earning over £40,000 next year.
From 2011 - except for the state pension and pension credit - benefits, tax credits and public service pensions will rise in line with the Consumer Price Index, rather than the, generally higher, Retail Price Index, saving over £6 billion a year by the end of the Parliament.
Housing Benefit will be reformed so there is a maximum limit of £400 a week, to save £1.8bn a year by the end of the Parliament.
The government will introduce a medical assessment for Disability Living Allowance from 2013 for new and existing claimants.
BUSINESS

From April 2011, the threshold at which employers start to pay National Insurance will rise by £21 per week, above indexation.
Tax relief for the video games industry will be scrapped.
CIGARETTES, ALCOHOL AND FUEL

No change this time round
ENVIRONMENT

BANKS

A bank levy is being introduced

[Guest]

Re: The Budget

Agree with quite a few points - such as Child Tax credits and Housing Benefit.

However, I dont see the point of increasing the personal allowance if VAT increases and claws it all back.

As for the no increase on booze, fags (I dont smoke anyway) and petrol, strictly speaking, this isnt true - as from Jan 11 these are subjetc to higher VAT anyway.

[Amethyst]

Re: The Budget

I think I agree with a lot of it in principle, not sure how it will affect me directly yet so might get narky, but its what I voted for and what I think the country needs even if it hurts a bit for a while longer.

[Amethyst]

Re: The Budget



amused me
The Daily Mash - OSBORNE TO SACK COVENTRY

[EXC]

Re: The Budget

I bet the bank levy will be less than the reduction in corporation tax meaning the banks are quids in.

[enaid]

Re: The Budget

amused me
The Daily Mash - OSBORNE TO SACK COVENTRY

VAT-Exempt or 5% VAT Goods and Services

The price of some things, in theory, should remain largely unaffected because they are either VAT-free or incur just 5% VAT. In practice, however, prices tend to increase across the board to cover such things as increased delivery costs, but the following items shouldn’t rise to the same degree. Here’s a rundown of VAT-free or 5% VAT goods and services, and a complete list can be found .
Vat-Free Foods

Note that the following list refers to food bought in shops, and not in restaurants, cafes, stalls etc.
Raw meat and fish; vegetables; fruit; cereals; nuts and pulses; culinary herbs; bread, rolls and pitta; biscuits (though not the nice kind that are topped or covered in chocolate); cakes; sauce; soup; vegetable oils, corn; sesame seed, sunflower seed, soya; canned and frozen food other than ice cream; salt; sweeteners; chilled or frozen ready meals; sandwiches (as a grocery item); wafers and cones; milk and flavoured milk drinks (including milk shakes); tea, cocoa, drinking chocolate and coffee (unless sold hot for consumption on the premises); and many more.
Vat-Free Everything Else

Physical education and sports activities; prescriptions; health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals; equipment for blind, partially sighted or disabled people; cycle and motorbike helmets; protective boots and helmets for industrial use; donated goods bought from charity shops; burial or cremation costs; tolls for bridges, tunnels and roads operated by public authorities; printing (brochures, leaflets and pamphlets); postage stamps for the UK; books, magazines and newspapers; baby wear; children's clothes and footwear; education and training; betting and gaming; bingo; lottery; and last but not least - financial services like loans or credit, and insurance services such as car insurance or home cover.
5% VAT Goods and Services

Children's car seats and boosters; carrycots; domestic gas, electricity and water; nicotine patches and gum; home insulation installation; and mobility aids for the elderly.
Remember, follow the link to see a complete list of VAT-free or 5% VAT goods and services.
Finally, here’s one we can all get behind. Let’s breathe a collective sigh of relief because if you’re in the market to buy... an airship... then you’ll find there’s no VAT to pay. The queue begins right here

[shell]

Re: The Budget

"Housing Benefit will be reformed so there is a maximum limit of £400 a week, to save £1.8bn a year by the end of the Parliament. "

I'm giving up work and finding a place to rent for £400 a week. Most people don't earn that after tax, so if you are paying that in rent, what are the chances you intend to go out and find a job?

[Amethyst]

Re: The Budget

In my area the maximum LHA is £177.21 a week (5 bed house - which rental prices private sector for 4 plus beds are between £600 and £950 a month) where I used to live its £281 (rental price 4 plus beds between £700 and £1500 month), I had to look at W1 postcodes to find LHA allowances over £400 a week, so I cant imagine its a massive proportion of people who do pay over £400 a week rent on LHA/HB, but I'm sure the figures will be about somewhere tho and am also sure it will be far more people than I expect. Calculate Your Local Housing Allowance

[shell]

Re: The Budget

If they are hoping to save 1.8bn a year, I would imagine there are quite a few claiming over £400 a week.

[Amethyst]

Re: The Budget

Loopy isn't it !

[enaid]

Re: The Budget


Chancellor George Osborne has delivered his Budget speech, outlining how the government plans to raise and spend money during the coming year. Read on for details of what was announced in the June 2010 Budget.
Tax changes

• VAT - the standard rate of VAT (Value Added Tax) will rise to 20 per cent from 4 January 2011 - the current rate is 17.5 per cent
• Personal Allowance – the Personal Allowance for people aged under 65 will increase by £1,000 in April 2011 - this means the point at which you start paying tax will rise from £6,475 to £7,475 for the 2011-12 tax year
• Capital Gains Tax - CGT will increase from 18 per cent to 28 per cent for higher rate taxpayers

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188500

Benefits and tax credits

• child tax credit - the child element of child tax credit will increase by £150 above indexation in April 2011 and £60 above indexation in April 2012
• child tax credit - families earning more than £40,000/yr won’t get child tax credit from April 2011
• Child Benefit - rates will stay the same for three years
• welfare reform - Housing Benefit and Disability Living Allowance will be reformed to focus on those most in need
• benefits and tax credits will be worked out using the Consumer Prices Index instead of the Retail Prices Index from April 2011

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188501

Tax rate tables

• http://www.direct.gov.uk/en/Nl1/News...2009/DG_183037

Pensions

• State Pension - from April 2011, there will be a ‘triple guarantee’ so the basic State Pension will rise by whichever is highest of; the average increase in UK wages, how much the cost of living increases that year, or 2.5 per cent
• public sector pensions - a commission has been set up to investigate the cost of public sector pensions - early findings will contribute to the Spending Review on 20 October 2010, with a full report in time for next year’s Budget

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188503

Savings and investments

• Capital Gains Tax - CGT will increase from 18 per cent to 28 per cent for higher rate taxpayers

Alcohol and tobacco




From 30 June 2010, cider duty rates are to be reduced. Follow the link below for further details.

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188505

Housing

• Housing Benefit - welfare reforms will focus Housing Benefit more on those in need
• Housing Benefit - benefits are to be up-rated in line with the Consumer Prices Index instead of the Retail Prices Index from April 2011
• Capital Gains Tax - higher rate taxpayers face an increase in Capital Gains Tax from 18 to 28 per cent
• Council Tax – the government will work with local authorities to freeze Council Tax in 2011-2012

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188506

The public sector and public spending

• spending - public spending will be reduced by £30 billion a year by 2014-15, in addition to existing plans
• pay – there will be a a two-year public sector pay freeze, while protecting those public servants earning less than £21,000 a year
• Council Tax – the government will work with local authorities to freeze Council Tax in 2011-12

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188507

Employment

• public sector – a two year public sector pay freeze, while protecting the 1.7 million public servants who earn less than £21,000
• National Insurance – the threshold at which employers pay National Insurance will be raised by £21 per week in April 2011
• National Insurance - new businesses outside the Greater South East will be exempt from up to £5,000 of employer National Insurance Contribution payments for the first ten employees hired

• http://www.direct.gov.uk/en/Nl1/News...2010/DG_188509

The economy

• bank bonuses - action will be taken on unacceptable bank bonuses, with a levy based on banks’ balance sheets from 1 January 2011 to reduce profits from excessive risk-taking
• Capital Gains Tax – CGT will rise from 18 to 28 per cent for higher rate taxpayers
• Capital Gains Tax - the 10 per cent CGT rate for entrepreneurs will rise from £2 million to £5 million
• Corporation Tax - the small profits rate of Corporation Tax will be reduced to 20 per cent from April 2011
• National Insurance - the threshold at which employers start to pay National Insurance will be raised by £21 per week above indexation in April 2011
• National Insurance - new businesses outside the Greater South East will be exempt from up to £5,000 of employer National Insurance Contribution payments for first ten employees hired
• Enterprise Finance Guarantee - EFG increased by £200 million to support £700 million of additional lending until 31 March 2011 - the EFG supports lending to small businesses that find it difficult to get normal commercial loans

http://www.direct.gov.uk/en/Nl1/News...2010/DG_188511


http://www.direct.gov.uk/en/Nl1/News...2010/DG_188499

[Amethyst]

Re: The Budget

Tax Credits phased out for earners over £30k (http://www.direct.gov.uk/prod_consum.../dg_188577.pdf download pdf)