Chancellor George Osbourne announced the 2012 Budget this week and as always it contained good news for some and bad news for others.
George Osbourne hoped that the Budget would be seen as one which would promote growth and there was some good news for businesses. However, the Budget didn't contain anything that would help with getting young people into work and with the amount of young people out of work at more than a million, some measures to help the young employed would have been welcomed.
There was some much-needed compromise when it comes to child benefit. The benefit will now not be removed for these earning less than £60,000 and the withdrawal of benefit for people earning more than £50,000 is to be staggered.
The price of cigarettes raised by 37p as of 6.00pm on Wednesday and an increase in alcohol duty had already been announced. There was an announcement that Vehicle Excise Duty would only rise by the rate of inflation but no concessions over Fuel Duty which is still set to rise in August despite the already crippling prices of petrol.
The personal tax allowance was increase to £9,205 and it it likely to rise to £10,000 in 2014/2015. Then came the news that the age-related tax allowance was to be scrapped and those already receiving the allowance would have ti frozen. The Chancellor stated that this was part of a "simplification" of the tax system but it's being argue that this will leave many pensioners worse off.
Saga have called it an 'outrageous assault on pensioners" and in a press release Dr Ros Altmann Director-General Saga said:
“This Budget contains an enormous stealth tax for older people. Over the next five years, pensioners with an income of between £10,500 and £24,000 will be paying an extra £3 billion in tax while richer pensioners are left unaffected.
“There is nothing in this Budget for savers, there is nothing to improve the annuity market, nothing to appease the damage of quantitative easing and nothing to support ISA changes and shelter older people’s money in cash. This Budget is terrible news for pensioners.”
“It is good to hear that we will be able to harness the power of pension funds to improve UK Infrastructure but in short, this Budget is another shocking example of the Government’s attack on poorer and older people. It is dramatically unfair.”
George Osbourne hoped that the Budget would be seen as one which would promote growth and there was some good news for businesses. However, the Budget didn't contain anything that would help with getting young people into work and with the amount of young people out of work at more than a million, some measures to help the young employed would have been welcomed.
There was some much-needed compromise when it comes to child benefit. The benefit will now not be removed for these earning less than £60,000 and the withdrawal of benefit for people earning more than £50,000 is to be staggered.
The price of cigarettes raised by 37p as of 6.00pm on Wednesday and an increase in alcohol duty had already been announced. There was an announcement that Vehicle Excise Duty would only rise by the rate of inflation but no concessions over Fuel Duty which is still set to rise in August despite the already crippling prices of petrol.
The personal tax allowance was increase to £9,205 and it it likely to rise to £10,000 in 2014/2015. Then came the news that the age-related tax allowance was to be scrapped and those already receiving the allowance would have ti frozen. The Chancellor stated that this was part of a "simplification" of the tax system but it's being argue that this will leave many pensioners worse off.
Saga have called it an 'outrageous assault on pensioners" and in a press release Dr Ros Altmann Director-General Saga said:
“This Budget contains an enormous stealth tax for older people. Over the next five years, pensioners with an income of between £10,500 and £24,000 will be paying an extra £3 billion in tax while richer pensioners are left unaffected.
“There is nothing in this Budget for savers, there is nothing to improve the annuity market, nothing to appease the damage of quantitative easing and nothing to support ISA changes and shelter older people’s money in cash. This Budget is terrible news for pensioners.”
“It is good to hear that we will be able to harness the power of pension funds to improve UK Infrastructure but in short, this Budget is another shocking example of the Government’s attack on poorer and older people. It is dramatically unfair.”
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