Budget 2013 highlights – the key announcements
Find out how changes to income tax, pensions, and fuel duty will affect your finances
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.
- 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.
- 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
- 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.