Thursday, 21st March 2013
UK BUDGET 2013 OVERVIEW – It really doesn’t matter which political party is in power, all annual budgets are about give and take and most British citizens have come to accept that when it comes to taxation there is always more taking by the government and more giving, via taxation, by the public.
Full Details: Budget 2013
Initially I was going to write some drawn out thesis on this years budget but instead I thought I would take a difference approach and provide the full video of the Chancellor delivering his Budget 2013 speech and an infographic that breaks down the essential elements of this years budget.
This years budget was always going to be about cutting public spending and giving back to the taxpayer. As with any budget we do have to accept that it is give and take and in order for the government to drag us out of the recession it must reduce overall spending, debt and give people some disposable income that will allow for spending.
As with any budget those who smoke are going to feel the pinch but his is designed to not only raise taxes but to almost force people to give up smoking. It is a fact that smoking related illnesses in the UK are soaring and the cost of healthcare, to the taxpayer, is rising accordingly and this cost has to be covered and it is only fair that smokers are taxed heavily – yes I am a smoker.
There was little surprise that Wines and Spirits also experienced an increase, however Beer drinkers will see a very small drop in the price of a pint of beer.
Easing the burden of taxation on those with low income was also a priority and therefore the taxation threshold has risen to £10,000, which will come into effect in 2014.
Another vital area to our economy was the business sector and they will see Corporation tax reduced to 20%, although this will not come into effect until 2015. Small Businesses are also to get a break from National Insurance bills which will help small business reduce its financial burden by £2,000 for every firm.
It was the goal of this government to reduce public spending and therefore some £11.5 billion in public spending cuts were announced, although schools and healthcare will not be affected. Public sector salaries, of which most taxpayers think are far too high, is also to be hit with a 1% pay increase.
I honestly felt that the budget wasn’t a bad one, although businesses could have gotten a better deal by not having to wait another two years before they start reaping the benefits of the 2013 Budget.
What’s your view? Could it have been worse or are you content with what the Chancellor has delivered?