Thursday 21 March 2013

A Budget for an Aspiration Nation


Yesterday, under a gloomy economic outlook, George Osborne delivered his fourth budget that focused on helping those who work hard and want to get on.

Critics on one side have argued that he needs to make much harsher cuts to get the deficit down quicker as national debt is scheduled to stand at approximately £1,400bn in 2015- roughly £25,000 for every household in the country. Unfortunately with a bleak international economic outlook, Osborne rejected this option.

On the other side, critics believe that he should now borrow more, thus increasing the deficit to pay for tax cuts, more spending or a combination of the two. However after not living within our means for the past decade the time has come to balance our books.

It is entirely right that during times of austerity the Conservative-led Government helps hardworking families who are struggling to make ends meet, which is why yesterday’s budget set out a range of measures to support people who work hard, save and aspire to a better life for themselves and their families.

Highlights include:

- Tax-free childcare- Government will pay 20% of a working family’s childcare bills every year- up to £1,200 per child. A family with two children will be up to £2,400 a year better off

- Personal allowance raised to £10,000- from April 2014, 2.7 million workers will be taken out of the tax system altogether. This is a tax cut for 24 million people, resulting in individuals paying £700 less in income tax than they did in 2010

- Fuel duty frozen- this creates the longest freeze in 20 years. Petrol prices are now 13p lower than they would have been under Labour’s plans, creating a saving for motorists of £170 more every year

- Help to buy scheme- helping people get on the housing ladder by a £3.5bn investment in government loans to financially stretched homebuyers and a £12bn scheme to increase the availability of mortgages to people who cannot afford a large deposit

- Boosting employment- from next April, the employer National Insurance bill of every business will be cut by up to £2,000. This means that they’ll be able to take up to 4 full time employees on minimum wage, without increasing their National Insurance bill

- Corporation Tax cut to 20% - giving Britain the lowest Corporation Tax in the G20 group of the world’s major economies

Finally….

1p is being taken off the price of beer so cheers to us all and well done to Osborne for putting forward a budget that helps people who work hard, save and aspire to a better life for their themselves and their families.



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