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 cancelled – this 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.