George Osborne has promised a simple tax system, far-reaching reform of the system in which millions of low wage raise of taxes in general.
Among the major announcements were the new pension system that will be easier to understand and a significant reduction in income tax.
The duty on tobacco is increased by five percent. Road tax increases to inflation and rising fuel prices have already offered debt will go ahead this year. The duty had been frozen for transport companies.
Some would be inclined to spend windfall. I not going to waste. Instead, I used it to pay off debt.
George Osborne Perhaps most controversially, 50p top rate of tax for the wealthiest in society has been reduced to 45p in 2013.
He pushed forward step - unpopular with some Liberal Democrats - to discover that an official report found the taxman was increased” almost nothing”.
He also proposed to reduce the reduction in child allowances paid to the better.
But he raised the threshold at which all begin to pay taxes of up to £ 9205, claiming that millions of workers would be £ 220 a year better as a result.
The Chancellor also confirmed that the suppression of various tax loopholes used by the rich including a 15% rate duty on homes held by the company.
In general, Mr. Osborne said that his action will cause five times as much from the rich than the 50% maximum rate imposed labor.
The Chancellor is also mitigated by planning to bring benefits to children from wealthy families. Allowance for a child only to be canceled, if someone in the house earns more than £ 50,000 - and only gradually.
This means an additional 750,000 families earn significantly more than the average wage will have some form of child allowances.
He said: “We’ll make our way in the world, providing new growth-friendly rules for planning.”
Click here for live analysis of the budget today from PricewaterhouseCoopers, however, he warned of the risks associated with the crisis in the euro area and Iran. He said that the Office of Fiscal Responsibility UK economy is expected to avoid recession. The growth figures in the OBR 2012 are 0.8 percent and 2 percent next year and 2.7 percent in 2014.
In accordance with the OBR, unemployment will peak at 8.7 percent this year before falling back.
The plaintiff estimates of the number revised downward by about 100,000 for each of the following four years, reaching 1.67 million this year, instead of the predicted 1.8 million.
It is expected that inflation will fall to 1.9 percent next year - just below 2 per cent of the
The deficit is also falling.
Borrowing forecast was revised downwards to £ 1 billion to £ 126 billion in 2011/12, £ 120 billion in 2012/13, £ 98 billion in 2013/14, £ 75 billion and £ 52 billion, £ achieve 21000000000 2016/17.
“We must stay the course,” said Osborne. “There will be no gifts today.
“Some would be inclined to spend the windfall.
“I’m not going to waste. Instead, I used it to pay off debt.”
However, he warned that millions of workers may have to work longer before they can retire.
Osborne told MPs:” I can confirm that today would not be an automatic review of the state pension age to ensure it keeps pace with the increase in life expectancy,” which caused the prospect of ever long life.
Osborne also set the task of saving the welfare budget of 10 billion pounds by 2016.
“We will also maintain our control welfare spending.
“The law on welfare reform two weeks ago was a historic moment.
“I pay tribute to my Right Honorable Friend the Secretary of Labor, and Pensions, and all my colleagues in the coalition for support for his resolute opposition to those who defend the unlimited wealth.
“But even with the law, to ensure the budget will grow to consume a third of all government spending.
“If nothing is done to rein in the welfare bill next, then the total mass of the cost containment will come from departmental budgets.
“The next spending review will be faced with it.
“So today I am publishing analysis, which shows that if the next spending review, we support the same rate reduction of departmental expenses, as we did in this review, we would have to make savings in the welfare of 10 billion pounds by 2016.
“We will also take into account the rise in aging population and the burden this places for future generations.
“We will be publishing a White Paper on social care.
I also said we will consider proposals for the management of future increases in state pension age, for an increase have already been announced.
“I can confirm that today would not be an automatic review of the state pension age to ensure it keeps pace with the increase in life expectancy.”
One of the areas where future government spending is expected to be lower than planned is Afghanistan.
Osborne also announced a 100 million pound improvement accommodation. Forces serving abroad, will receive 100 percent of the average bill assistance for council tax, and family well-being of the grant will be doubled.
Among the announcements of the transport infrastructure was a plan to extend the electrification of the Trans-Pennine route.
Get Britain Building Fund, which provides funding for construction, should be expanded. Financial partnerships should be expanded by 20 percent, and the enterprise finance guarantee will also be expanded.
Britain must resist”” lack of airport capacity in south-east, said Osborne. Ads are due this summer.
The Government is to support £150 million of tax increment financing to help councils promote development and provide an extra £270 million for the Growing Places fund. Ultra-fast broadband and Wife will be the first of the ten largest cities in the UK, including Newcastle. New tax breaks and incentives for film, animation and video games have been announced. To roars of approval Chancellor joked: “I intend to keep Wallace and Gromit is where they belong.”