Budget 2015

So another budget has come and gone and Britain’s economy looks more prosperous than ever. The conservative liberal democrat coalition looks to have turned around an economy which was badly hit by the global financial crisis of 2007-08. Chancellor George Osborne has delivered five previous budgets but none more important than this one as the general elections looms and the nation watching him and his party.

The budget itself was a promising one with many attractive facts and figures being read during the chancellor’s hour long speech. The growth forecast was estimated for the next three years and it followed as:

2.5%- 2015

2.3%- 2016

2.3%- 2017

There was also the fact that employment has never been higher in Britain’s history with 1000 new jobs being created everyday with  80% of these in full employment. There is a 5.3% fall in unemployment and less benefits claimants since 1975. The government also plans to increase the minimum wage to £8.00 by the end of the decade.

The government has forecasted  inflation this year at 0.2%. They expect to sell £9 billion of  Llyods shares . In addition the government has also met the 2010 debt target. They also expect less in borrowing from £90 billion this year to £70 billion in 2016 and £39 billion the following year.

In regards to taxes both personal and corporate there are many changes. The income tax paid by the top 1% projected to rise from 25% in 2010 to 27% in 2015. There will also be a cut down on tax havens and soon the tax havens of the Cayman islands could be as transparent as their waters. The budget has also stated that corporation tax is to be cut to 20%.The petroleum reserve tax is to be cut from 50% to 30%.

With the aspects of charities and church the budget has included new funds for veterans and regimental charities. The church repair fund is to be trebled and there will be 20 new housing zones. There will also be investment in London transport.

The public changes to finance and other related areas includes the abolishing of NI for under 21 and the paper based tax returns for both personal and business. This will be switched to the online method. There was also good news for the pub goers, as it was announced 1p will be taken off beer, 2p off cider and whisky  and a cut of 2% in spirit duties. Wine duties are to be frozen. The chancellor also said that car owners will be £10 better off when filling their cars.

The personal allowance was also revealed as the government has announced that it will increase the personal allowance of currently £10,000 to £10,600 this year and to £10,800 in 2016 with the hope of raising it to £11,000 the following year should the Tories stay in power. There will also be help for first time home buyers from the government’s help to buy scheme.

So looking back at UK in 2010 and UK in 2015 we can see that the nation has grown under the Conservative power and can overtake Germany in 15 years as Europe’s largest economy. The leadership shown by David Cameron and his party has clearly transformed the nation and has got us out of recession and on the road to recovery.