Chancellor defends Budget as he comes under fire
CHANCELLOR Alastair Darling has defended his first Budget, saying it would help vulnerable people such as pensioners and those with young families.
Mr Darling has come under fire from opposition politicians since the Budget was announced, with shadow chancellor George Osborne lamenting that the Chancellor has “kicked Britain's families while they're down”.
There has been a mixed response to some of his environmental measures.
In his first Budget, Mr Darling unveiled few, if any surprises, and cut his October forecast by 0.25% that the UK economy would grow by up to 2.5% in 2008.
As was widely trailed, the Chancellor postponed the 2p per litre fuel duty rise due next month for six months until October – but added an extra 0.5p rise from 2010 and put up duty on cigarettes by 11p a packet and he put 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits.
However car owners with low-emission vehicles will pay no car tax from 2010.
On his controversial plans to raise capital gains tax (CGT) for business owners, the Chancellor confirmed the increase from 10% to 18% would go ahead next month accompanied by the limited concessions he was forced to announce in January.
On the issue of foreign nationals living in the UK, so-called 'non-doms', he confirmed the new £30,000 annual charge but said that further measures will not be introduced “in this parliament or the next”.
On the wider economy, he said inflation would rise before returning to its 2% target in 2009 and remain on target thereafter.
He said borrowing next year would rise to £43bn, 2.9% of national income – £7bn more than forecast last year – with a similar increase the following year.
David Heaton, partner and head of employer consulting at accountants Baker Tilly in Leeds, said: “This is a very cautious Budget focusing on improvements in the economy over the last 11 years rather than the deterioration in the economy that has been noticed recently.
“There are no revolutionary changes to the system, no big ideas and no rabbits out of the hat.”
Mr Darling told MPs that Child Benefit would rise from April 2009 to £20 week – a year earlier than planned and said the child element of the child tax credit for families on low and middle income would increase by £50 a year above inflation.
As expected, Mr Darling announced a raft of measures aimed at cutting the UK's carbon emissions including rules to make supermarkets charge for plastic bags.
Mr Darling took over as chancellor when Gordon Brown became prime minister last June.
The Conservatives said Mr Darling's hands had been tied by the decisions of his predecessor, who they claim borrowed too much in order to fund public sector reforms.
Baker Tilly Budget seminar – Friday, 14 March 2008
Join us at our Budget 2008 seminar at Cedar Court Hotel, Wakefield where our tax specialists will review the Chancellor's proposals and the potential impact on your business and personal finance.
Date: Friday, 14 March 2008
Venue: Cedar Court Hotel, Denby Dale, Wakefield, WF4 3QZ
8.30am – Registration and breakfast
9.00am – Presentation
10.15am – Questions and answers
10.30am – Tea and coffee
If you are interested in attending this event contact Jennie Fisher, Tel: 0113 285 5094 or email jennie.fisher@bakertilly.co.uk
Visit our News section for full Budget coverage in association with Baker Tilly.
