Last week Alistair Darling announced his budget. Many people believe that, come May, Labour won’t be in power to implement these proposals, but should that not be the case, these are just some of the effects to consider.
Stamp duty limit raised to £250k for first time buyers
We feel it is slightly pointless if banks are not lending to first time buyers without a 25 per cent deposit. Darling would have been better off setting the lenders quotas of first time buyers.
Compulsory retirement age potentially to be scrapped
This is well overdue, with people living longer now. It should mean, generally, a better standard of living for retirees if it comes to fruition.
ISA allowance raised
The ISA limit will be raised from £7,200 to £10,200 and will increase each year after that in line with inflation. This is welcome, and, if inflation is 2 per cent, next year this could see us saving an extra £200 per year, tax free.
Staged 3 pence duty rise on fuel
Darling says this will allow them to tax families and businesses less.
But
almost every business owner drives, and most people drive to work. This
is just
another thinly veiled stealth tax which is going to hit exactly the
individuals
which Darling claims it will benefit.
Small business rates to be cut for a year from October
This is a must, but does it go far enough? Raising the investment
allowance is
pointless when small business owners have no spare cash to take this
up.