Adigun, Beatrice, 20283623
During the revealing of the 2013 Budget, the government objective was to push the UK into stability and out of the possibility of a triple-dip recession. The mantra was to ‘help those who aspire to work hard and get on’ and also aid those who wish for better care for their families, purchase a home, start or grow a business, and save for retirement. The government also aim to create more jobs, reduce personal and corporation tax.
The 2013 budget also announced that:
Increase capital spending by £3bn (from 2015-16), which will be funded from the reductions in current spending.
Departmental spending would be reduced by £1.1b in 2013-14 and £1.2b in 2014-15. School and health budgets will not be revised.
Pay within the public sector will be capped at 1% in 2015-16
The OBR economic growth forecast for 2013 has been halved by the government to 0.6% from 1.2%, with hopes that the UK will come out of the recession this year. The forthcoming figures of growth are as follows:
2014 – 1.8% 2015 – 2.3%
2016 – 2.7% 2017 – 2.8%
The deficit has been reduced by a third:
2009-10 – 11.2%
2013-14 – 7.4%
2017-18 forecast – 2.2%
2013 - £114bn as opposed to £108bn
2014 - £108bn
2014-15 - £97bn
2016 - £87bn
2017 – £61bn
2018 - £42bn
National income has fallen by 43%
Public sector net debt
2013 – 75.9%
2014 – 79.2%
2015 – 82.6%
2016 – 85.1%
2017-18 – 84.8% http://www.bbc.co.uk/news/business-21861322
* The government has made plans to build 15,000 affordable homes and will provide an extra £225m to support. * Plans to increase funds available for building for rent * Plans to extend the right to buy so more tenants can purchase their homes.
A £5.4 billion package of financial support will be made available in order to tackle long-standing problems in the housing market including the launch of Help to Buy - which offers two schemes aimed at helping those who want to get on, or move up, the housing ladder.
The government will extend First Buy to individuals who express interest in owning a new build home. An equity loan will be provided, reducing 20% of the mortgage, which will have to be paid back one the home is sold.
The government will also implement a mortgage guarantee of £600,000 for lenders offering mortgages to individuals who hold a deposit between 5 and 20%. This will help to make mortgages more readily available for those with small deposits.
Tenants will have the period of right to buy reduced from 5 to 3 years, allowing them to own their homes a lot sooner then previously permitted.
Pay taxes and allowances
The government are planning to alleviate employees to paying tax on the first £10,000 of their income. This personal allowance will be increased from £560 to £10,000 in 2014-15. Therefore by April 2014, 2.4m people will no longer have to pay income tax.
Another introduction will see the reduction of corporation tax, with the government planning to make the UK tax system the most competitive within the G20.
The introduction of the single-tier state pension will be introduced in 2016-17. This will make retirement clearer and ensure that individuals will pay the exact same amount of NIC’s. From April 2016 there will also be a cap at £72,000 implemented for the cost of social care. This will help ease the worry for ageing individuals and those with ageing family members.
The government are also striving to seek out those who attempt to avoid the payment of taxes. If the government crack down on these perpetrators the UK could see £4.6b in new revenue over the forthcoming 5 years. In order for this operation to be effective The Isle of Man, Jersey and Guernsey have all consented to exchange tax information with the UK.
Families, Education and employment and skills
Working families will receive up to £2,400 each year in