George Osborne will announce help for 10,000 first-time homebuyers Tuesday, March 22, 2011
Budget to increase tax threshold
George Osborne will announce help for 10,000 first-time homebuyers Chancellor George Osborne is to increase the personal income tax allowance to give 25 million people a cut of around £45 a year in Wednesday's Budget, the BBC has learned.
The amount people can earn before paying tax will be increased by around £600 from April next year.
Mr Osborne will also announce £250m to help 10,000 first-time homebuyers purchase newly built flats and houses.
He is also expected to say a planned rise in fuel duty will be scrapped.
The Budget is the first since the autumn's spending review, which outlined the government's cuts programme.
Experts expect the forecast for economic growth in 2011 to be downgraded - after figures showed a 0.6% contraction in the last three months of 2010.
But they also believe borrowing figures will not be as high as previously anticipated - up to £10bn lower than the £158bn predicted in last June's emergency Budget.
Figures released on Tuesday showed the Consumer Prices Index annual rate of inflation had risen to 4.4% from 4% in January, driven by food, fuel and clothing costs.
The coalition government is committed to increasing the personal tax allowance to £10,000 by the end of its time in office.
In last year's Budget the chancellor announced a rise of £1000 to £7,475 from April 2011.
But higher rate taxpayers will not benefit from this, while the change to be announced on Wednesday will help all those earning less than £115,000 a year.
The Budget will also include a £250m package designed to help 10,000 first-time buyers to purchase a newly built flat or house, the BBC has learned.
The buyer would have to put up 5% of the cost, while the government and home builder would both put up 10%.
Mr Osborne hopes this scheme will boost the construction industry and help support up to 50,000 jobs.
The number of first-time buyers fell to 347,000 in 2010 - a record low.
In 2004/05, more than 700,000 people purchased their first property.
Mr Osborne has hinted that he will introduce a measure to help motorists affected by rising oil prices, fuel duty and the recent increase of the VAT rate from 17.5% to 20%.
It is thought he will scrap plans to raise fuel duty by one penny a litre, which had been due to come into effect in April.
Labour is calling for the VAT rise on fuel to be reversed, but Mr Osborne argues that this would be illegal under European Union rules.
At the same time as Mr Osborne makes his statement to the House of Commons, the Treasury will publish its "strategy for growth".
On Tuesday, Labour's shadow chancellor Ed Balls claimed there was "nothing" of importance in it, after apparently getting a leaked copy.
He told MPs its main policy was "getting rid of maternity and paternity rights".
But Mr Osborne told MPs said this was not the case and accused Labour of making too many spending commitments.
He will begin his Budget speech at about 1230 GMT on Wednesday.
This article is from the BBC News website. � British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-12824055
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment