How the budget affects you

George Osborne unveils another £2.5 billion of cuts across Whitehall as he struggles to free up cash to kick-start growth.

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Changes in personal income tax allowance

Chartered accountants Blick Rothenberg produced this table to show how tax-free income thresholds will change after today's Budget.

The top row shows the amount under 65s can earn tax-free. Credit: Blick Rothenberg

Under 65s can earn their first £10,000 tax-free by the start of the 2014 tax year.

By that point, people earning over £31,865 will enter the 40% higher rate tax band.

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Welcome for fuel duty freeze

The decision to cancel the fuel duty increase due in September has been welcomed by the MP for Thirsk, Malton and Filey.

This news will be welcomed by many living in Thirsk, Malton and Filey. Obviously, I am disappointed that the Chancellor has not agreed to a rural fuel duty rebate for certain areas of North Yorkshire. Measures in the budget that will help hard working families include future childcare vouchers for working parents or single parents, help with mortgages for new homes, the reduction of tax on new jobs in small companies, as well as the commitment to raise personal allowances so no-one will pay income tax for the first £10,000.

These measures show that the Government is trying to help all with aspirations who are trying to do their best for their families.

– Anne McIntosh MP for Thirsk, Malton and Filey

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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

MP called for beer tax cut a year ago

South Yorkshire MP and former pubs minister John Healey has also welcomed news that the price of pint is coming down. Mr Healey asked the Chancellor to do just that on Budget Day 2012, in a bid to stop pub closures and falling beer sales.

The beer-loving MP repeated his calls earlier this month in joining a campaign calling for a freeze in beer duty organised by the British Beer & Pub Association, CAMRA (Campaign for Real Ale) and SIBA (Society of Independent Brewers). He said today:

The beer and pub industry is worth millions to the local economy, and people rightly value their local as the hub of their community. I want this to be the first step the Government take towards recognising this and giving a lot more support to pubs.

– John Healey MP for Wentworth and Dearne
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How the Chancellor's Budget plans to help business

  • New Employment Allowance will take the first £2,000 off the employer National Insurance bill of every company in the country
  • Around 450,000 small businesses - one third of all employers - will pay no employer National Insurance at all after introduction of Employment Allowance in April next year
  • Small firms will be given help through Government procurement budgets, growth vouchers and controls on regulators' charges
  • The Capital Gains Tax holiday will be extended
  • Corporation tax to be reduced by a further 1% to 20% in April 2015
  • Small company and main rates of corporation tax merged at 20p
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