The Budget – UPDATED

This Wednesday will see Chancellor George Osborne deliver his latest budget to parliament. Debate has surfaced suggesting the Chancellor plans to cut the 50p tax rate for high earners, as well as a crackdown on stamp duty evaders.

Speaking more broadly on BBC’s Andrew Marr Show the Chancellor stated “the measures in the budget are going to be targeted at working people on low and middle incomes. That is our priority.”

Shadow Chancellor Ed Balls dismissed the prospect of any cut to the 50p tax rate labeling Osborne ‘out of touch’. He believes the best stimulus for the economy would be a cut to the VAT rate. In recent days Labour also launched an initiative to get young people into work, guaranteeing a job to under 25’s out of work for 12 or more months.

But what do the people of Wrexham want to see happen on Wednesday? A cut in fuel duty? A raise in the personal income allowance? Respite for young people out of work?

There are still a number of questions surrounding the state of the UK economy for this year and beyond, come Wednesday we may be a step closer to answering some of them.

UPDATE 21/03/2012

Following the Budget announcement earlier today people in the local area have been tweeting their views on what the Chancellor had to say. Peter Ellis (@thedruid65) was disappointed there was no u-turn on the planned 3p rise in fuel duty this August. JamesB (@jamesbwxm) pointed out the escalator on beer duty was still in effect – so would rise 5.4%; and an elderly citizen was concerned about the lack of action to address pensioners with financial struggles.

A statement has already been released by MP for Wrexham Ian Lucas, who believes the new measures will conspire to make people in Wrexham worse off.

However, those in work are to be rewarded with a significant increase in the personal income allowance, the amount someone can earn before they are taxed.

The main headlines in today’s Budget included:-

– A cut in the 50p income tax rate for high earners to 45p from April 2013

– An increase in the personal income allowance to £9205 from April 2013

– New stamp duty level of 7% for homes of £2 million or more, and a 15% stamp duty for homes bought through a company

– Rise of 5% above inflation (around 37p) on a packet of cigarettes, effective from 6PM this evening

External Link

BBC’s coverage of the Budget 2012