My Take on the 2012 Budget
Author: Bill Wynn
So the Budget. Let's be clear from the outset, I am not into politics, nor do I support or favour a particular political party. However, I do like common sense and like to think the majority of the time I know right from wrong.
Generally I think the coalition government are doing a good job. They are being tough, as they need to be. We are heading in the right direction and a tough stance has to be taken.
I was quite happy with George Osborne’s 2012 Budget. The things that stood out for me and my opinion on them were:
Tax has come down.
Yes, come down. Corporation tax has come down. Reduced by 2p on the £1. I would like to have seen a bigger drop, but 2p is better than 1p or 0p.
Good that top rate of tax was reduced from 50p to 45p. Not that I am in this top bracket, but it is not right that any person has to lose half of what they earn. Plus, its blatantly apparent that the top earners would have been creative to swerve paying top tax, or reaching the £150k threshold, I know I would have done if it had affected me.
Good that the tax-free allowance has risen significantly (£1,100), which helps us all.
Good that the chancellor denounced “morally repugnant” tax avoidance schemes, as he unveiled reforms to make high earners pay their fair share.
State backed credit easing provides cheaper loans for small firms.
Planning rules are eased as UK infrastructure projects lead a growth drive.
London Mayor to take more control over London finances, with Transport for London to take a share of business rates. Longer commuter trains and station expansion will be in a 5 year rail plan this summer.
Dozens of young entrepreneurs will be offered taxpayer-funded small loans, known as “micro-funded”, in a bid to tackle youth unemployment and boost the economy. The Department for Business, Innovation and skills will provide up to £10 million in small, cheap loans during the trial project, to be called the Youth Enterprise Scheme.
The Chancellor raised the prospect of the Thames Estuary airport, by stating the Government must “confront” the lack of air capacity in the South East and ensure that the UK is not “cut off” from developing countries.
The not fair
I dislike stamp duty period. Why should we pay tax for the privilege of moving house? We’ve already paid our tax on our income. Anyway a tax the rich stamp duty has been put in place, 7% on homes worth more than £2m. Before you say they can afford it, would you want to pay circa £250-300k (costs and stamp duty) to move house?
More increases on our vices, namely drinking alcohol and smoking. Enough of our pubs have closed, give them a break. Tax the supermarkets and ease the tax on the small independent businesses and pubs.
No reduction in road tax, nor petrol tax. Come on Gov sort it out and give us a break, our petrol tax is amongst the highest in the world. The Centre of Economics and Business Research recently said a modest cut in fuel duty of 2.5p per litre would create 180,000 jobs.
No reduction in employers NI contributions.
Other things mentioned that I picked up on…
UK growth in 2012 will be 0.8%, a tenth of a point better than forecast in the autumn statement. GOOD NEWS.
Inflation, 4.5% last year, is now set to be 2.8% this year, then on target to drop just below 2% in 2013. MORE GOOD NEWS.
So, that’s what I took from the budget in summary. I believe and the opinions of others that I speak to on a daily basis are positive about 2012 and beyond. We are certainly in a better place than we were 12 months ago as a country and economy. There’s still a lot of work to do, but this budget has been a good one, so well done the government, and let’s continue to all push onwards and upwards to better days.
What did you think of the 2012 budget? Your likes and dislikes.