I have singled out what I consider to be changes in the Budget which will most impact on my constituents.
- Last year our economy grew 2.6% which is faster than any other western country. Next year it is forecast to grow by 2.5 per cent. Employment is at a record level with 2 million jobs created since 2010 and the jobless rate at 5.3 per cent. According to the independent Office of Budget Responsibility the average household is now £900 per annum better off than in 2010. In addition the national deficit has been reduced by 50 per cent over the last 5 years. This is very good news.
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There was good news for pensioners too who will be able to trade in their annuities for cash and tax on such a move being slashed to a marginal rate for
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Pensioners will be able to trade in their annuities for cash pots, with the 55% tax charge abolished and tax applied at only 20 per cent. Personally I am delighted that widows of police officers and firefighters who choose to marry again will have their existing pensions protected which is in line with Service widows.
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As a CAMBRA supporter I am delighted that beer duty has been cut by 1p per pint and cider by 2 pence. Whisky has had a 2 per cent excise duty cut along with some other spirits. I am pleased that there is no increase in the tax on wine. However tobacco duty is due to rise at 2 per cent above inflation which suggests a rise of about 15 pence per packet of twenty cigarettes. Thankfully there has been no increase in petrol taxation.
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It is great news too that the tax-free personal allowance to rise from £10,600 in 2015-6 to £10,800 in 2016-7 and £11,000 in 2017-8. At the same time the start of the 40p in the pound income tax is to rise to £42,385 in 2014-15 and to £43,300 in 2017-18. I think it is good news too that annual taxation returns are to be digitalised.
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It is excellent news that the first £1,000 interest on savings income to be tax-free for basic rate taxpayers and £500 allowance for 40p tax ratepayers. It is also great that the annual savings rate for ISA’s is to go up to £15,240 as well as the fact that ISA’s will become much more flexible so that savers can withdraw money and then put it back later in the year without losing their tax free allowance.
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There is to be a new "Help to Buy" ISA for first-time buyers which the Government will top up by £50 for every £200 saved for a home deposit. This should help all first time buyers.
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As an ex-soldier I am absolutely delighted that a further £75m from Libor fines is to go to charities for regiments which fought in Afghanistan and government to contribute towards permanent memorial to those who died in Afghanistan and Iraq and help renovate Battle of Britain memorials, which includes saving the RAF Memorial Chapel at Biggin Hill. This last piece of news is fantastic for those of us that go there regularly. There is also a £25 million grant to support service veterans – especially those who were involved in nuclear tests.
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British students will get personal loans (up to £25,000) to help them study for PhDs and research-based masters degrees.
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It is particularly good news too that mental health services are to get an extra £1.25 million in funds.
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There are huge problems in repairing church roofs – so much a part of our heritage – so I am very pleased that another £15 million will be made available to help solve this huge problem.
All in all I think this was a very good budget for people who live in Beckenham. It made some sensible adjustments which will help a lot of people – especially those saving for a house and those relying on pensions.