George Osbornes Emergency Budget
Like all Budgets there is some good news and some not so good, but at least for the first time in 13 years it’s a budget about saving money and less profligate spending.
Income tax personal allowance to increase by £1,000 to £7,000 this year and eventually to £10,000.
Corporation Tax will be cut by 1% each year for the next four years so that it is at its lowest rate in this country’s history by 2014 (24%). Corporation tax will be even lower for small firms. Investment allowances will be kept until 2012 so that their abolition won’t hurt recovery.
No increase in alcohol, tabacco or petrol as Labour had put them up enough already
Public sector pay freeze will be for two years (not one as previously suggested), exempting those earning £21,000 or less. These will receive flat £250 increases.
VAT up to 20% from January 2011, this was always coming whoever won the General Election.
Full details of the budget here