THE BUDGET 2013
WHAT TO WATCH
Insolvency News will be reporting the Budget live as it happens from 1230 hrs. Stories will appear on the homepage as the Chancellor announces each measure. In the meantime, here’s our guide for what to watch for in this year’s Budget:
1. The personal tax allowance is predicted to rise to £10,000 from April 2014. This has been a policy driven by the Liberal Democrats since they joined the coalition government. George Osborne is thought to be in agreement.
2. This morning’s newspapers were already reporting that customers of collapsed insurer Equitable Life could be in line for a windfall to compensate them for their losses arising from the group’s disastrous with profits policies.
3. After much lobbying from trade associations and business groups, the Treasury is under pressure to reduce the current rate of Corporation Tax. If he does go for this, analysts are predicting it will nudge down to 20%.
4. Parents holding cash in child trust funds for their offspring may get the option to switch this into the new Junior ISA, offering them more freedom as to where the cash is invested. The UK personal finance press believes that this is very likely.
5. It is thought that UK growth – as measured by Gross Domestic Product (GDP) – will be cut from 1.2% to just 1%.
ANNOUNCEMENTS ALREADY MADE
1. State pension reform has already been announced and widely reported with the new pension terms brought forward to 2016.
2. Government backed infrastructure projects have been given a boost with additional capital spending of £2.5 billion already confirmed.
3. Childcare vouchers are to be payable to couples who are in full time work and require assistance with nursery fees. Up to £1,200 is on offer for parents who are both in work.
4. Social care fees are to be capped at £72,000.
5. The regional growth review conducted by Lord Hesletine has been accepted and (most of) the recommendations accepted by the Department of Business Innovation & Skills.