BUDGET: Business Analysis

David Hirst
Our Business Correspondent David Hirst Photo: Calendar

So a budget for the millions or the millionaires? I suppose it depends on which side of the political divide you sit. Our Business Correspondent David Hirst explains.

George Osborne was keen to emphasise just how tight money is in the UK right now, and his budget is once again geared towards trying to get the economy moving.

Business will welcome his plan to cut corporation tax to 24 per cent from next month and 22 per cent by 2014. He also wants to simplify the tax system for small firms, and the idea of providing enterprise loans for young people to start their own business is clearly aimed at trying to reduce the record number of young people out of work at the moment.

And what’s in it for families? Mr.Osborne’s announcement of a higher personal allowance will lift around 600,000 out of tax, but it’s worth remembering that one third of adults don't pay income tax now.

On Calendar this evening I’ll be interviewing a young couple who have just had to downsize their home to keep their heads above water. It seems they’re typical of many families nowadays who’re struggling to cope with record food and fuel prices and sky high energy bills.