Chancellor delivers Budget

The Chancellor promises more spending cuts, but also investment in infrastructure as he delivers his annual Budget.

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Analysis: Budget could hit those on low incomes

The Resolution Foundation, an independent research and policy organisation, analysed the Chancellor's 2013 Budget:

  • Personal tax allowances: Small gains for the great majority of tax payers excluding the very highest and lowest earners. However three-quarters of the £1 billion goes to households in the top half.
  • Fuel duty: The freeze on fuel duty will disproportionately benefit lower and modest income families.
  • Childcare: Welcome increase in generosity of childcare support through Universal Credit but only a minority of working low-income families with children will benefit.
  • Housing: Focus on new supply to be welcomed but focus on home ownership is unlikely to benefit those on low and modest incomes.
  • Wages: OBR forecasts show wages have dipped further than previously realised. For the median worker, the downturn has become even more severe.

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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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Chancellor attacked over public sector workers

The Chancellor is either oblivious to the tough time that millions of public sector workers and their families are having or he is deliberately setting out to punish them.

Public sector workers have seen their pay frozen as the cost of living soars and thousands now find themselves earning less than the living wage.

Family budgets are at breaking point and millions of nurses, teachers, fire-fighters, council workers and civil servants will have been hoping the Chancellor might ease their pain today, not add significantly to it.

– TUC General Secretary Frances O’Grady

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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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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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