Budget 2013: I don’t think it was that bad

This might be an unpopular view, but bear with me.

Budget 2013 brings a rise in personal allowance, so most earners will get a £1,335 increase on the yearly tax threshold. This was expected, as was the change to personal allowance. The further increase which was planned for 2015 has been brought forward a year, which was a surprise. It might free up a tiny bit more money to be spent, but did George do enough to boost the economy?

I thought that the help provided for buying new homes was welcome, although there’s been some confusion since. I’m sure some will exploit the system, but a 5% deposit will be a lot easier for first time buyers. Because the mortgages are for new homes only, this will hopefully encourage construction and house prices may rise because of this. Guaranteeing some mortgages should get the banks lending. We can only hope.

More industry specific were the changes to limited liability partnership partner status, which go further to prevent disguised employment and the artificial share of profits with partners; and the promise of closure of offshore PAYE umbrella schemes. Both of which have cost millions in lost employers’ national insurance.

Corporation tax is getting cheaper and cheaper, I assume to offset against the avoidance measures being imposed. We must keep the large employers happy, after all.

All in all I thought it was a good budget and I hope George has done enough to get the economy going again.

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