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The Budget - What To Expect

Wednesday March 20 2013


George Osborne George Osborne


GEORGE Osborne is set to detail his £2.5bn cuts in today's Budget at 12.30pm.

Here's a brief outline of what to expect.

Don't expect a VAT cut. The idea of a reduction back to 17.5 per cent mimics a policy from Alistair Darling, but is very unlikely to happen as it'd cost around £12bn.

The coalition's '£10,000 ambition' is also thought to come in. This means that you can earn up to £10,000 and not pay tax.

The Chancellor's already told a cabinet meeting on Monday that government departments will have to cut their spending by 2 per cent over the next few years. The saved money's set to go on infrastructure - which is expected to boost the economy.

Pensions. The proposed 'flat-tier' scheme would be worth £144 a week, and would come into effect from 2016 - a year earlier than planned.

He's already said that a cap on the amount the elderly pay for social care - originally planned to be £75,000 and introduced in 2017 - will now be brought in in 2016 at £72,000.

Tax changes. Several tax changes are already pencilled in. The reduction of top-rate tax to 45p, and an increase in personal tax allowance, which'll rise from £8,105 to £9,400.

Alcohol and fuel duty. If recent coverage is to be believed, the Budget could prove to be bad news for drinkers, and good news for drivers.

It's looking increasingly possible that Osborne will attempt to appease health campaigners with some rises in alcohol tax. The extra revenue that'd then be raised might fill the gap left by a potential suspension of an increase in fuel duty, which was planned for the autumn.

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Reply Posted by rainbow on Thursday March 21 2013 at 10:38
One pence off beer, not much but a step in the right direction !!!