The reaction to this week’s Budget by Chancellor of the Exchequer, George Osborne MP, has been largely well received according to Andrew Turner.
The Island’s MP has said that he had received calls and e-mails and already spoken to a number of Islanders who had told him they were pleased with specific announcements made on Wednesday.
The measures announced include an increase in the personal allowance to £10,500 in 2015/16; increases in the personal allowance under this government will now be worth £805 to a typical basic rate taxpayer; it will also take over 3 million people out of paying income tax at all. Those approaching retirement will no longer be forced to buy an annuity (to pay a pension), instead they will have access to the pension fund they have accumulated throughout their working lives; they will also benefit from more advantageous tax arrangements. The transferable tax allowance for married couples where only one spouse works will be set at £1, 050.
The Government has also accepted recommendations for increases to the National Minimum Wage. Savers will have higher limits and more flexible opportunities for tax-free savings.
There is additional help for businesses who export and to increase the skills base, particularly of young people, there is an extension to grants to support an extra 100,000 apprenticeships. Fuel duty has been frozen again; meaning that on average petrol will be 20 pence per litre less than it would have been under the plans of the previous government.
The news for those who wish to avoid paying taxes is not so good. Those who have signed up to disclosed tax avoidance schemes, using loopholes in the law, will be required to pay their taxes up-front. They can then go to court if they wish – and will get their money back if they win.
Mr Turner said:
“There was welcome news about the economy; we have a sound foundation for further economic recovery and the forecasts for growth and employment are positive. However, the job is not yet done. This was a good budget, particularly as it will revolutionise private pension provision and recognises the needs of savers. Unlike some people I believe that people who have saved prudently can be trusted to make decisions that are right for them. It has been crucial to the recovery that interest rates have been kept low – that is important for mortgage-payers and businesses; however the flip side of that is that savers lose out. To some extent that has been addressed in this budget.
Article continues below this advertisement “The Chancellor has cut a penny off the price of a pint of beer – I’m sure that will be well received by many Islanders. There were also some less widely covered measures that just seem to be the right thing to do – such as ensuring that emergency service workers who lose their lives in the course of their jobs will not pay inheritance tax. The VAT relief on fuel for air ambulances and inshore rescue boat services will also be a welcome little bit of help for those voluntary services.
“I am out and about knocking on doors in Newport tomorrow – so I’m sure I will get more feedback on the measures in the Budget and what Islanders feel about how it will affect them.”
