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How the Budget Affects Us

Written By On 21/03/2013

George Osborne has released details of his budget and received mixed reactions. The petrol and diesel that was due to go up by 3p per litre this autumn has now been stopped, and the proposed 6p extra on a pint of beer that was due this coming Sunday has now been changed to a reduction of 1p per pint instead. He said

Freezing petrol duty and cutting beer duty will not transform the finances of any family, but it helps a little to have some bills that aren't going up.

The AA and RAC welcomed the news, but the Road Haulage Association believes that the duty price freeze is not enough and feels that the duty on diesel should have been cut.

There was some promising news for new home buyers. The government will make available three and a half billion pounds over the next three years for anyone that can put a maximum of 5% deposit. The five year interest free loan will in fact represent another 20% towards the payment for new built properties costing up to £600,000.

The chancellor has also introduced plans to bring forward the £10,000 income tax threshold to 2014 instead of the original 2015. This act should provide extra cash in the pockets of over 20 million tax payers and prevent nearly 3 million from having to pay income tax completely. An employed person earning £10,000 in 2012-13 is paying £670 in income tax and national insurance at the moment. This will now decrease to a combined £380 the following year and to £250 in 2014-15.

It appears that his original growth prediction for 2013 was somewhat optimistic and he has now cut that by half from 1.2% to 0.6%.

He feels that the housing market is how Britain will move forward positively and therefore pledges to guarantee over 100 billion pounds worth of mortgages. The government will help purchasers who are seeking to own their own home by offering a guarantee of up to 5% deposit.

Everybody in Britain is aware that we are living in extremely tough financial times, the likes of which most of us have never seen. Each one of us is struggling to live within our own personal budget.