The bite-size budget - Economy - News - Moneyfacts


The bite-size budget

The bite-size budget

Category: Economy

Updated: 01/05/2014
First Published: 25/03/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

George Osborne's second budget as Chancellor has been widely touted as the budget for growth and business – it was also a budget of surprises. In order that you don't do a Ken Clarke and fall asleep, we've summarised what we think are the key nuggets from Wednesday's budget:

The Budget 2011: the bite-size version
  • To take effect in the 2012-13 tax year, the personal allowance for under 65s will go up by £630 to £8,105.
  • The Government is going to consult on merging the payment of Income Tax and National Insurance in order to reduce the administrative burden on employers.
  • Don't worry if you're a pensioner – it won't mean that you'll now be paying National Insurance.
  • Your family will get 10% off their Inheritance Tax bill if you leave 10% of your estate to charity.
Housing and Mortgages
  • A new shared equity scheme has been launched to help 10,000 first time buyers get onto the housing ladder when they purchase a new build property.
  • The Support for Mortgage Interest scheme is now continuing for another year.
  • There's going to be a Council Tax freeze for this year.
On the Roads and in the Skies
  • 1p a litre fuel duty reduction, which has already taken effect. (Don't forget that tax on fuel rose in January with the 2.5p hike in VAT).
  • £100m to tackle the nation's potholes.
  • Passengers on private jets will pay passenger duty (about time too: have you noticed that every Bond villain has a private jet – now we know why: it's tax efficient!).
  • The Government is consulting on introducing a contribution-based State Pension that will be worth circa £140 per week (if you're currently a pensioner this increase – or decrease – won't apply to you).
  • Battered public sector workers will have to stump up a further 3% for their pensions.

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