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Budget 2013 highlights – the key announcements

Find out how changes to income tax, pensions, and fuel duty will affect your finances

george osborne and the budget

The chancellor’s fourth Budget included changes to the personal tax allowance and fuel duty.

With recent uSwitch research finding a 25% rise in the cost of essential household bills since 2008, consumers were hoping for some respite in today’s Budget announcement.

However, with 85% of people feeling that the Chancellor doesn’t understand the financial fears of ordinary people, expectations were low.

Here we give a rundown of all the major announcements from the 2013 Budget.

Tax

  • As announced last year, the 50p top rate of tax will be cut to 45p as of April.
  • The personal income tax allowance – the amount people can earn before paying tax – will be increased to £10,000 by 2014, a year early.
  • There will be 20% tax relief on childcare vouchers up to £6,000 per child from 2015.

Housing

  • Shared equity schemes have been extended, with interest-free loans up to 20% of value of new build properties.
  • Bank of England guarantees to provide £130bn of new mortgage lending for three years from 2014.

Fuel, tobacco and alcohol

  • September’s planned 3p fuel duty rise has been scrapped.
  • April’s 3p rise in beer duty has been scrapped – beer duty will instead be cut by 1p from Sunday, 24 March.
  • The annual inflation +2% rise in beer duty will be ended, with the “duty escalator” remaining for wine, cider and spirits

Other announcements

  • The single flat-rate pension of £144 a week will be brought forward a year to 2016.
  • The 1% cap on public sector pay will be extended to 2015-16.
  • Corporation tax is to be cut by 1% to 20% in 2015.
  • In energy, there will be further tax incentives for ultra low-emission and tax allowances for investment in the shale gas industry.

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