- Tyne Tees
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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.
The government will put up loans of 20% of the cost of a new house interest free. People in Gosforth, Newcastle, gave us their reaction.
The decision to cancel the fuel duty increase due in September has been welcomed by the MP for Thirsk, Malton and Filey.
Members of the North East Chamber of Commerce watched the Chancellor's budget speech together at a dinner at St James' Park. Chief Executive, James Ramsbotham, gave a cautious but positive reaction.
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
Our correspondent Dan Ashby joined Pam in the studio to explain what the Budget announced by George Osborne may mean for the North East.
- 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
British Armed Forces could find their pay going up more than expected, with a reported 1.5% rise on the way according to the Daily Telegraph. That's despite a cap on public-sector pay awards of 1%.