The Chancellor of the Exchequer George Osborne recently released his 2013 budget which detailed his plan for the coming year 2013-14. The new budget sees benefits for some groups and drawbacks for others – an overview is provided here:
For public sector workers, excluding the armed forces, once again pay scales will be restricted and pay rises will fall beneath inflation by 1%. For many workers in the sector, this has been going on for 5 years.
Groups interested in climate change may be disheartened to hear of the new plans to harvest gas from new sources recently found. This is part of an initiative to help the public by obtaining more fuel and increasing energy investment.
There will also be some amendments to housing benefit, as the building of social houses will take longer, therefore no improvements have been made to waiting times. Although with right-to-buy schemes, the length of time required to have occupied the home before being able to purchase the property has been reduced to 3 years. This will hopefully help tenants who want to buy their home.
In a measure to establish more income from tax evaders, steps will be taken to deter businesses from purchasing companies at a loss to reduce tax. This has the potential to generate approximately £4.8 billion over the course of 5 years.
On another note the budget does have some positive aspects for drivers with the expected fuel duty rise cancelled. This is a welcome decision for many drivers who found the rising fuel costs to become a burden.
Those seeking to purchase a home will benefit from the help-to-buy scheme which will enable them to receive 20% of the value of their property as long as they have 5% that they can put down as a deposit first. Homeowners will also benefit as property prices are set to rise.
Beer duty has seen a reduction by 1p in an attempt to boost British pubs. In contrast to this wine, spirits and cider have all seen a rise in duty tax with wine now costing 10 pence more, spirits 38 pence more and cider 2 pence more.