Chancellor dedicates Budget to ‘makers, doers and savers’

BUDGET Chancellor of the Exchequer George Osborne
BUDGET Chancellor of the Exchequer George Osborne

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THE Chancellor of the Exchequer has unveiled a number of measures and packages to help ‘makers, doers and savers’ in this year’s budget statement.

George Osborne gave the statement in the House of Commons this afternoon.

As well as already announced measures such as raising the income tax threshold to £10,500 and giving working parents support with childcare costs, a number of new initiatives were announced.

From July, cash and stocks and shares ISAs will be merged to create a new type of account, with a yearly tax-free limit of £15,000.

He said currently, 24 million people in this country have an ISA.

Tax on all long-haul flights will be the same as the band B tax rate that is paid on all flights to the United States to encourage business.

Other noticeable changes will include a 1p tax cut on beer, the freezing of duty on cider and duties on spirits.

A planned duty rise on fuel, set to kick in later this year, will now not go ahead.

Bingo halls will have their tax cut by half to 10p, with fixed odds betting terminals seeing a tax rise from 20p to 25p.

Following a recommendation by the Office of Tax Simplification, the chancellor announced it would accept the office’s recommendation to move the collection of Class 2 national insurance contributions into self-assessment.

Next year, corporation tax will reach 20 per cent.

The chancellor said: ‘Businesses keeping more of their money to create jobs and invest in the future.’

Following the hour-long address, Labour leader Ed Miliband said: ‘The working people of Britain are worse off under the Tories.

Living standards are down, month after month, year after year.

‘Standards of living are not rising steadily and sustainably but falling sharply and steeply.’