Well….. My colleagues and I have all just sat round the boardroom with our eyes glued to the announcements that Alistair Darling has made.
Starting with saying that recovery is still in its infancy, Darling continued to flow into a speech about the state of our economy, how the bank credit remains weak and that improved financial regulation must be a key priority (something which the majority of us are well aware of) – Darling continued to state that his budget was built to secure recovery and set a route to long term prosperity. (We hope!)
The Government apparently intend to pay off their debt by several means, one being to sell their shares in RBS, Northern Rock and Lloyds whilst also slapping a 50% tax on excessive bonuses on bankers.
No doubt the new scheme which entitles everyone to a basic bank account may also be a sign of relief to over 1 million people who have not had access to bank accounts for several years.
BUT, will this now be the end of free banking for some of us as the banks continue to try and up their profits? Time will tell….
It seemed that Darling continued to compare today’s recession with the 80’s/90’s, no doubt in a bid to sway the next election with stating that only 1.6 million people are claiming unemployment compared with over 3 million during the recession when the Conservatives were in power.
Darling also continued to state that 4 million people have been helped off the claimant count in the last year – a statement that in my opinion does need a pat on the back!
Great news for me to rush and tell my grandparents would be that their weekly income will be rising to £132.60 and higher winter fuel payments are guaranteed for a further 12 months increasing some payments to £250 per week – a fantastic move in my opinion.
Even further good news is that the Government now intend to make it easier for the over 60’s to gain access to tax credits.
Stamp duty has been scrapped on properties worth up to £250,000 for first time buyers only – unfortunately nothing has been said on the ridiculously high deposits required to help first time buyers on the property ladder so I have absolutely no idea of actually how many people this will help – this will be funded by increasing the stamp duty to 5% on homes over £1 million – something which didn’t go down too well in the Commons.
The annual ISA limit has risen from £7,200 to £10,200 and then plans to increase annually with inflation – good news for those of us who can afford to put a few pounds away each month for a rainy day!
Driving is going to become even more expensive with a 3p rise in fuel duty between April 2010 and January 2011. Also, if you earn over £20,000 you are also going to be paying 1p extra in National Insurance contributions.
If you enjoy a nice drink on a weekend, be careful what you choose off the menu as the price of Cider is rising 10% and for all you smokers out there, tobacco is increasing 1% which I think we have all come to expect.
On a good note, £4 billion from next years reserve is being used to fund operations in Afghanistan – this provoked a wobble of agreeing heads in the Commons as people agree that our men/women are working hard on behalf of our country.
Darling announced plans to enable small businesses to grow which in my opinion was a very smart move which will no doubt help thousands of SME’s thrive.
Last year, RBS and Lloyds lent £38 billion to SME’s and Darling’s plans include those very banks lending a further £94 billion this year. A new national investment body will provide £500 million of finance & more Government contracts will go to SME’s – a move that is fully welcomed by us at the office!
More good news for businesses will be that business rates are intended to be fixed from October 2010
There is no increase on Capital Gains Tax and the amount allowed to be invested in the first year has doubled to £100k – no doubt any entrepreneurs out there will be happy to increase their allowance.
£100 million is being dedicated to repairing our local roads after the big freeze left us ranting about the pot holes in the roads.
By investing in the future of today, a £35 million University enterprise fund is to be established as £270 million funding is to be given to universities to help create an extra 20,000 more university places starting September this year.
For those with Children aged 1 & 2, you will now receive an extra £4 per week from 2012 – so… we have a 2 year wait until this comes in to force! By this time my child will be over the age limit L
Finally, sparking uproar in the commons, Darling continued to state that as some were escaping their tax obligations, Tax Information Exchange Agreements have been set up with Dominica, Grenada, and Belize - home of Tory ‘non-dom’ donor Lord Ashcroft.