Budget 2013 – Something for Everyone
Help for families and businesses:
• £10,000 personal allowance. This is a tax cut for 24 million people. Next April the personal allowance will reach £10,000. As a result families will pay £700 less in income tax than they did in 2010. And 2.7 million will have been take out of tax altogether.
• New £2000 Employment Allowance. We will cut the jobs tax of every business, charity and community amateur sports club by £2,000 from 2014. Businesses will be able to hire one extra person on £22,400 pa, or four people working full time on the minimum wage, without paying any National Insurance. And it means 450,000 small businesses, one third of all employers, will pay no jobs tax at all.
• Fuel duty frozen. We are cancelling the fuel duty rise planned for September. Pump prices will now be 13 pence per litre lower than under Labour’s plans. For a Vauxhall Astra or a Ford Focus that is £7 less every time you fill the tank. Fuel duty will have been frozen for nearly three and half years.
• Beer duty cut. Under Labour’s plans beer duty would have risen by 3p a pint this year. Instead after Sunday night we are not only cancelling the 3p rise, but also introducing a further 1 penny cut – saving drinkers 4 pence a pint compared to Labour’s plans.
• Help to Buy. We are allocating over £3.5 billion to support those who want to get on, or move up, the housing ladder. The Government will provide up to 20 per cent of the equity to help anyone who wants to buy a new built home. And for three years from January 2014 we will also provide a new guarantee to help lenders offer more people 80 to 95 per cent loan to value mortgages.
• 20p rate of Corporation Tax. We will cut corporation tax even further: to 20 per cent in April 2015. Under Labour corporate taxes were 28 per cent. Now we have the lowest rate in the G7, and next month it will fall further to 23 per cent. When it reaches 20 per cent in April 2015 we will have the lowest rate in the G20.
• Tax free childcare. From autumn 2015, the government will offer tax free childcare, meeting 20% of childcare costs for working families with children under 12. Once fully implemented it will be worth £1,200 per child, and so will save a typical working family with two children under 12 up to £2,400 a year. 2.5 million families will benefit.