UK BUDGET SMOKE AND MIRRORS
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George Osborne has unveiled measures to boost the income of pensioners and savers hit by low interest rates. The amount people can save tax-free in Isas is to rise, while pensioners also get a higher interest savings option. People will also no longer have to use their pension pot to buy annuities.
The chancellor froze petrol duty, cut bingo tax from 20% to 10%, froze spirits and cider duty and cut a further 1p from a pint of beer - but put the price of cigarettes up. Labour leader Ed Miliband dismissed the Budget as full of the same old Tory tricks and said millions of people were worse off under the coalition government. The surprise which was the focus of speculation ahead of the 55-minute speech came at the end as Mr Osborne said cash and share Isas were to be merged into a single New Isa with an annual tax-free savings limit of £15,000 from 1 July. The limit for Junior Isas will be raised to £4,000
There was disappointment for those wanting to see a big rise in the starting point for the higher rate of tax - Mr Osborne said the threshold would rise from £41,450 to £41,865 next month, and then by another below-inflation 1% to £42,285 next year. During his speech, which comes two months before the European elections and 14 months before the next General Election, Mr Osborne unveiled plans to support economic recovery , including tax breaks to boost productivity, exports and manufacturing.
