Budget 2012

News, information and reaction to George Osborne's 2012 Budget.

Latest ITV News reports

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Tax changes announced in the Budget

  • Top rate of income tax reduced to 45p from April 2013
  • Child benefit will only be withdrawn from higher rate tax-payers if someone in the household has an income of more than £50,000. To avoid a "cliff-edge" effect, child benefit will be withdrawn at 1% for every extra £100 earned over £50,000.
  • An additional 750,000 families will keep some or all of their child benefit and only those earning £60,000 or more will lose all of it
  • Tax-free personal allowance to rise by £1,100 from April 2013 to £9,205, making 24 million people £220 a year better off
  • This change will lift an additional 75,000 people in the East of England out of income tax

Headline Budget changes

  • No change to duty rates on alcohol
  • Duty on all tabacco products to rise by 5% above inflation from 6pm on Wednesday - the equivalent of 37p on a packet of cigarettes
  • Fair fuel stabiliser will mean that above inflation rises in fuel duty will only return if price of oil falls below £45 a barrel.
  • No further changes to existing plans for fuel duty
  • Vehicle excise duty to rise by inflation, but frozen for road hauliers

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Budget measures so far as they affect the Anglia region

  • Extra £100 million of improvements to armed forces accommodation, funded by £2.4 billion savings from ending combat operations in Afghanistan.
  • Forces serving overseas to receive 100% relief on average council tax bill, and families welfare grant will be doubled.
  • The UK must "confront" the lack of airport capacity in the south east, said Mr Osborne. Announcements later this summer.
  • Sunday trading laws to be relaxed for eight weeks around Olympics, starting on July 22.
  • "Major package of tax changes" to boost oil and gas extraction in North Sea
  • Funding for ultra-fast broadband and wi-fi in ten of the UK largest cities and 30 smaller cities.
  • £100 million of support for new university science research facilities
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