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Emergency budget round-up – What does it mean for you?

Get the lowdown on Budget cuts

This week’s ’emergency’ Budget has been big news, and there’s an awful lot to take in – so here’s a round-up of some of the key points, as well as links to some more in-depth information.

  • VAT is to go up to 20% from 4th January 2011 –  look out for a comment from our own Jake Ridge in this article
  • Personal income tax allowance is to be increased to £7,475 from April 2011 – this will save basic rate tax payers £170 a year and will mean that 880,000 will no longer pay income tax
  • Capital Gains Tax has gone up to 28% for higher rate tax payers
  • The proposed ‘broaband tax’ has been cancelledthis wouldhave added£6 a year onto landline rental
  • No increase in duty on fuel, achohol or cigarettes
  • Child benefit is to be frozen for 3 years – the health in pregnancy grant will also be abolished from April 2011, and the Sure Start schemerestricted.
  • Tax credits will be cut for families with an income of over £40,000
  • There will be new limits on how much housing benefit people can claim
  • People will have to have a medical assesment to claim Disability Living Allowance from April 2010
  • Insurance premium tax to increase from 5% to 6% from January 2011
  • 2-year pay freeze  for public sector workers earning over £21,000
  • The basic state pension will be linked to earnings from April 2011, and will also be guaranteed to rise alonside either earnings, prices or 2.5% (depending on which is highest)

Find out more about what George Osborne’s Budget will mean for your finances.

  • Jaffa Cakes are VAT free because they are cakes and all cakes are VAT free. Never buy another biscuit; stick to Jaffas.

    Only nuts in shells are VAT free so don’t buy any other kind of nuts.

    Tampons are VATable at 5%; Ladies, keep on bleeding, It’ll help pay for your maternity leave

  • Great overview on all of the upcoming taxes. VAT going up 20% is a little worrisome.

  • elizabeth rennick

    David Cameron and George Osborne and Ian Duncan Smith should try living on benefits and see how they manage cutting benefits is not the answer as what are people supposed to live on if there are no jobs are they going to find jobs for us all i am disabled and i want to work but i am limited to what i can do will they support me to find a job i dont think so