Budget Report 2010 For The South East

Direct from HM Treasury.

This has been directly sent to VentnorBlog by HM Treasury, so is written in their words – Ed

Budget Report 2010 For The South EastToday the Chancellor of the Exchequer has set out his Budget.

The measures announced will reduce the deficit, introduce a fairer tax system, and encourage an enterprise and growth agenda in the UK.

These steps are based on the Government’s key values of responsibility, freedom and fairness. These measures include:

  • To help areas and communities particularly affected by reductions in public spending make the transition to private sector-led growth and prosperity, the Government will create a Regional Growth Fund in 2011-12 and 2012-13. This fund will operate in England only and support proposals from private and public-private bodies that create sustainable increases in business employment and growth.
  • Confirmation of temporary increase in the level of small business rate relief (SBRR). Eligible businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from 1 October 2010. Businesses with rateable values up to £12,000 will receive significant reductions. 58 per cent of properties in the South East have a rateable value of up to £12,000, and will benefit from this measure if occupied by an eligible business.

  • The impact of the employer NICs rate rise previously announced will be largely reversed by increasing the threshold for employer NICs by £21 a week above indexation. This will lead to a saving of around £440 million in the South East.

  • The Budget 2009 proposal to repeal the special tax rules for furnished holiday lettings will not be implemented. Instead, the Government will consult over the summer on an alternative proposal to ensure the tax treatment of holiday lettings meets EU legal requirements in a fiscally responsible way, which does not penalise UK businesses, by changing the eligibility thresholds and restricting the use of loss relief. This will benefit an estimated 7,800 individuals in the South East who receive an income from furnished holiday lettings.

  • The income tax personal allowance for those aged under 65 will be increased by £1,000 in cash terms, taking it from £6,475 in 2010-11 to £7,475 in 2011-12. As a result, the Government estimates that 23 million basic rate taxpayers will benefit by up to £170 each. In the South East over 3 million basic rate taxpayers will gain from this measure.

  • Government will uprate the basic State Pension by a triple guarantee of the highest of earnings, prices or 2.5% from April 2011. The Consumer Price Index will be used as the measure of prices in the triple guarantee. However, to ensure the value of a basic State Pension is at least as generous as under the previous uprating rules, the Government will increase the basic State Pension in April 2011 by the equivalent of Retail Price Index. An estimated 1.6 million pensioners in the South East will benefit.

  • Government will uprate the standard minimum income guarantee in Pension Credit in April 2011 by the cash rise in a full basic State Pension to ensure the lowest income pensioners benefit from the triple guarantee. 220,000 pensioners currently receive Guarantee Credit in the South East.

  • The Government will introduce legislation to waive certain backdated business rates bills, including for some businesses in ports. An estimated 3,000 businesses across England will benefit.

Chief Secretary to the Treasury Danny Alexander said “The previous Government has left us with a legacy of debt and unsustainable spending, we are taking the decisive action needed to pay for the past and plan for the future.

“That is why today we have set out a comprehensive five year plan to put the British economy back on track. We have made the tough choices needed to get our borrowing down but we have done it in a way that is fair, protects the vulnerable and supports businesses across Britain.”

Image: Crown copyright republished with permission of HM Treasury.

Tuesday, 22nd June, 2010 1:43pm

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10 Comments on "Budget Report 2010 For The South East"

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Craig

First with the news again. Thanks VB.

Dontsosure

Not quite the first, other island media covered this sooner than vb! buy hey this comment mill be blocked anyway

John Bingo

What? Just looked at the CP they have Nothing; IWRadio have Nothing; Other sites have Nothing.

Budget Freak

I have been watching it on the BBC, but it’s helpful to be able to look at specifics here. Have you got more to come?

Geoff Lumley
George Osborne said his top priority is cutting the deficit. But in order to get the deficit down, you need to keep economic growth up and you need to keep unemployment down. You don’t get borrowing down by pulling the plug on support for business, throwing people out of work and stifling economic growth. The Chancellor delivered a budget that will throw people out of work, hold… Read more »
Ventnor Vintner
I find it ironic that both Geoff Lumley and Labour’s Harriet Harman chose to describe the budget as reckless. Recklessness suggests risk taking putting our economic security in jeopardy. George Osborne has decided to try to reduce the deficit significantly in order to put the UKs public finance back on a secure footing. It will involve some pain for all, some job losses and some shrinking of… Read more »
Ventnor Vintner
Geoff, a few specific points……you don’t make many specific points in your post: “pulling the plug on support for business”….He has reduced corporation tax by 1% for each of the next 4 years, creating certainty for businesses that Britain will become a better place to do business in the future. Also for new start ups outside of the south east there will be no employer NI payments… Read more »
No.5
I doubt there would be much difference between budgets. What id do doubt is that a Labour budget would have taken into considerastion ability to survive the cuts. Yes Tory cuts will affect everybody, but the Rich can afford it, whereas the poor can’t. Anyclaim that this budget will reduce the deficit is fantasy..we are paying the interest on the deficit, not the deficit itself. We have… Read more »
intentionally blank
just to take one of your points, yes, increasing the tax threshold by £1000 is good. But then we were told they would increase the threshold to £10k, not just by £1k. Its now about £7k I think, not the £10k the condems promised. Of course they say they will increase it over the course of the next 5 years, but a lot can happen in 5… Read more »
Don Smith

It’s about time we all realized that they are all the same.

When you get cheats like Hazel Blears getting re-elected by the d*ck-heads of Salford, I have lost all interest in politics.

I have started collecting matchboxes, I have a box of Swan already:-)