Analysis: Budget Day 2013

Analysis of the Chancellor's Budget announcement and the effect it will have upon the Borders.

Latest ITV News reports

'Decisive action is needed now' says Scotland's Finance Secretary

The Finance Secretary for Scotland, John Swinney, has given his post-budget reaction:

“The Chancellor has downgraded every economic growth forecast he has made and as a consequence of his policies public sector debt is rising. Today the Chancellor should have offered a decisive injection of new capital to fuel economic recovery.

"He has however cut the hard cash the Scottish Government has available to spend and applied a “straight-jacket” of loan and equity facilities over which the Scottish Government will have no discretion and which will have to be repaid at a later date.

"Decisive action to stimulate economic growth is needed now."

– Scotland's Finance Secretary John Swinney

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Shelter Scotland 'disappointed' with Chancellor

“We are disappointed the Chancellor did not take this opportunity to scrap the ill-conceived Bedroom Tax and whilst any new investment in social housing is welcome, today’s Budget falls well short of the 100,000 homes proposed by the CBI and British Chambers of Commerce.

“Scotland should see some additional investment following today’s Budget and we now call on the Scottish Government to use all of this extra money to invest in a major housing programme and build at least 10,000 new social homes a year to end Scotland’s housing crisis for good.”

– Graeme Brown, Director, Shelter Scotland

Michael Moore welcomes tax cuts for Borderers

“Raising the tax free part of a person’s income to £10,000 next April was on the front page of the Lib Dem’s 2010 manifesto and I am extremely proud that today we have delivered.

“This measure means that thousands of Borderers will receive a further tax cut next year, on top of the tax cuts they have already received since 2010, totalling £700.

"It will put more money back in the pockets of hardworking Borderers and make the tax system fairer for those on low and middle incomes.

“Scrapping of the autumn fuel duty increase announced today will provide another helping hand to Borders families.”

– Scottish Secretary of State, Michael Moore

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How will the Chancellor's Budget affect you?

Here are some of the measures announced by Chancellor George Osborne that could affect voters' wallets:

  • Rise in personal allowance brought forward to 2014, meaning no income tax on the first £10,000 of earnings
  • Tax free child care vouchers worth £1,200 per child and increased support for families with children on universal credit
  • Flat rate pension worth £144 a week to be brought forward to 2016
  • Fuel duty rise scrapped
  • Help for Equitable Life policy holders extended to those who bought with-profits annuities before 1992, with payments of £5,000 and extra £5,000 for those on lowest incomes
  • Planned 3p rise in beer duty tax scrapped and replaced by a 1p cut in duty on a pint of beer
  • New Help-to-Buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20% of the value of a new build house
  • Cap-on social care costs to come in in 2017 and protect savings above £72,000
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