We were told to expect a Budget of ‘hard truths’ and a ‘Budget for business’, but what exactly did we get?
There were a number of elements of the 2014 Budget that should please the business community, with the main focus of the business points being upon boosting business investment and exporting.
The Chancellor promised that:
- Business rate discounts and enhanced capital allowances will be extended for another three years
- Direct lending from Government to UK businesses to promote exports will be doubled to £3bn and interest rates on this lending will be cut by a third
Both of these areas are being worked on now due to under performance in previous years in order to ensure the UK’s economic recovery continues.
The other major points from the 2014 Budget were:
- The point at which people will start to pay income tax will be raised to £10,500
The 10p tax rate for savers will be removed
- Cash and shares ISAs will be merged into a single New ISA with an annual tax-free savings limit of £15,000 from 1st July.
- All tax restrictions on pensioners’ access to their pension pots will be removed
- Taxable part of pension pot taken as cash on retirement will be changed to normal tax rates – rather than the previous 55%!
- The price of a pint will drop by 1p
- Tax on tobacco will rise by 2% above inflation
- The planned fuel duty rise in September will not happen
- There will be a £7bn package to cut energy bills
- A twelve-sided £1 coin will be introduced in 2017
- Help to Buy equity scheme for new-build homes extended to 2020
- £200m will be made available to fix potholes
Photography: Valeria Romanova