Budget: Tax cuts for families and businesses

Chancellor George Osborne has raised income tax allowance to £9,205 from £8,105 from next year in his Budget speech and has cut corporation tax by an extra penny.

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IFS: Stamp duty 'badly designed' tax

by - Economics Editor
Stamp duty
The Institute for Fiscal Studies called stamp duty a "badly designed" tax Credit: Rui Vieira/PA Wire

A house valued £1 over £2 million will mean an extra £40,000 in stamp duty. The Institute for Fiscal Studies thinks annual mansion tax (like council tax) is a better idea.

The IFS added that stamp duty is "an exceptionally badly designed tax".

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Cameron defends 'fair' Budget

George Osborne and David Cameron
George Osborne and David Cameron after the Chancellor delivered his Budget Credit: PA Wire

David Cameron has defended Chancellor George Osborne's Budget, insisting that it was "fair" after being asked to justify the freezing of age-related allowances for pensioners.

He told a school in Bradford, West Yorkshire: "Every granny in Bradford West, as around the country, is going to be benefiting from the biggest ever increase in the pension that comes in in April - an extra £5.30 a week.

"At the same time the Budget also delivered a tax cut for 24 million people in our country. We have now taken two million of the lowest paid people out of tax altogether so it's a good Budget for our economy and it's a fair Budget for all our people."

IFS: Why did the government ignore National Insurance?

by - Economics Editor

Institute for Fiscal Studies on the Budget - We know what the costs are for raising basic rate threshold, but savings, for example, stamp duty receipts are less certain.

There is a risk this Budget may end up being a giveaway rather than neutral Budget as so many elements seem uncertain.

If aim of raising tax threshold was to incentivise work for low paid, why did the government ignore National Insurance - an even lower threshold.

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