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George Osborne: Budget boosts business, supports families and rewards work

Thursday, March 22 2012

George Osborne

Chancellor George Osborne has unveiled a raft of measures in his Budget that rewards work, boosts business and helps those who aspire to do better for themselves and their families.

In his 2012 Budget the Chancellor revealed that:

  • 24 million ordinary families will benefit from the largest ever increase in the personal tax allowance, with most basic rate taxpayers gaining £220 every year. In total the Government will have taken two million low paid people out of tax altogether.
  • To boost business there will be an additional one per cent cut in corporation tax - a sign that Business is open for business
  • Child Benefit is to remain in full for all families with earners on £50,000 or less. The withdrawal will be gradual and only those households where someone who earns more than £60,000 will lose all of their child benefit. 
  • The Government will reinvest £100 million to improve armed forces service accommodation and there will be a doubling of the families' welfare grant, which is used to provide additional support to families left behind
  • The 50p top rate of tax will be abolished and from April 2013 will be reduced to 45p
  • The Government will crack down on stamp duty avoidance and will introduce a new Stamp Duty Land Tax rate of seven per cent for residential properties over £2 million, which will raise £300 million a year by 2016

In his Budget speech, George Osborne said:

"This Budget supports working families and helps those looking for work. It unashamedly backs business. And it is on the side of aspiration: those who want to do better for themselves and for their families.

"This Budget reaffirms our unwavering commitment to deal with Britain's record debts. But because we've already taken difficult decisions, this can also be a reforming Budget that seeks to repair the disastrous model of economic growth that created those debts."

He added:

"Last year, the personal allowance rose by £1,000. In two weeks time, it will go up by another £630 to £8,105. Together, these increases have taken over a million low income people out of tax. And today, I want to go much further and much faster.

"I am announcing the largest ever increase in the personal allowance - the amount people can earn tax free. From next April that amount will increase by £1,100. Every working person on low or middle incomes will benefit. People will be able to earn up to £9,205 before they have to pay any tax. Millions of working people will be £220 better off every year. That's £170 better off after inflation.

"Because higher rate earners will also benefit, 24 million people earning less than £100,000 a year will gain from this measure.  We are in touching distance of the goal of £10,000 personal allowance that we all share.

"And I can tell the country that as a result of our Budgets, people working full time on the minimum wage, will have seen their income tax bill cut in half. And this coalition Government will have taken two million people on the lowest incomes out of tax altogether.

"In the middle of this Parliament, in difficult economic times, this coalition Government has not settled for a "do nothing" Budget. We have not ducked the difficult choices - we've taken them head on."

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