Business leaders have given George Osborne's Budget a cautious thumbs up, but it's still unclear how far the North East will benefit
Steven Bruck, a partner at Blick Rothenberg Chartered Accountants, takes a look at the winners and losers of this year's Budget.
Osborne surprisingly had a fair amount of leeway in his Budget. But we have to set all this in the context of a very gloomy overall picture.
North East Chamber of Commerce Chief Executive, James Ramsbotham, analyses the 'business friendly' budget. Changes to Corporation Tax, fuel duty and National Insurance show 'he has listened to businesses'.
– TUC General Secretary Frances O’Grady
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.
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.
– Anne McIntosh MP for Thirsk, Malton and Filey
These measures show that the Government is trying to help all with aspirations who are trying to do their best for their families.
Hannah McNulty joined members of the ITV Business Club to find out their reaction as they watched the Chancellor announce his Budget.
You can watch her lunchtime report below.
The Communities and Local Government Secretary Eric Pickles said he had seen "longer chip shop queues" than the number of staff protesting on the picket line today:
Just 8% of DCLG staff participating into today’s industrial action. Passing the picket line today, I’ve seen longer chip shop queuesFrom @EricPickles on Twitter:
- 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
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