2012 Budget - thebestof Shrewsbury summarises
21st March 2012
... Comments

With the 2012 budget announced today, thebestof Shrewsbury has processed the main points in this handy blog for you.

The message being reported in the main is that George Osborne wants the country to earn its way out of the economic drudgery (haven't we heard that from another Chancellor...?)

Taxes for working families are being cut, but taxes on the homes of the 'super rich' are being hiked up and businesses should get a helping hand with a reduction in corporation tax.

The new Budget includes:

  • Income tax threshold raised by £1,000 meaning extra £346 a year for basic rate taxpayers with two million lifted out of income tax altogether

  • Corporation tax cut by 2% to 24% by April 1 and will drop further by 2014

  • Rise in stamp duty to 7% for homes worth over £2m

  • 50p income tax rate is reduced to 45p and tax loopholes to be closed

  • Promises to hit rich for five times as much money each year and does not rule out Lib Dem's 'mansion tax' in the future

  • Climbdown over child benefit with threshold raised to £60,000

  • £100m promised to improve accommodation for armed forces personnel 

  • 37p extra on price of a packet of 20 cigarettes as of 6pm tonight

  • Fuel duty to rise by 3p in August despite record petrol prices


  • Corporation tax on company profits reduced from 26 per cent to 24 per cent

  • £20bn Government-backed lending scheme for businesses confirmed


So, perhaps as usual, it's good and bad news - depending on who you are, and what your lifestyle and or business is. There was a sting in the tail as Chancellor Osborne announced a review that could lead to the retirement age rising above 70 being implemented much earlier than planned.

He pledged that Britain would "earn its way in the world" with a radical Budget which slashes taxes for millions of hard-working families and businesses.

Public spending cuts and increased stamp duty and taxes for the high earning 'super-rich' will pay for a tax giveaway of more than £4billion for 24 million lower and middle-income earners.

The centrepiece of the Budget was plans to increase the tax-free personal allowance to £9,205 – lifting two million people out of paying tax altogether and putting £346-a-year in the pockets of basic rate taxpayers.

For businesses large and small came some welcome relief with plans to slash corporation tax.

In an effort to show the world Britain is open for business, George Osborne cut the amount of tax firms pay on profits - double the reduction previously announced.

The cut will come into effect in April and Mr Osborne also spoke of his intention to drop the rate further, to just 22p in the pound by the end of his Government's term in office.

If you live in Shrewsbury and want any help or advice on your finances, here are our recommended financial advisers in town.

About the Author

Catherine B

Member since: 12th June 2012

I am a PR and copywriting specialist and handle much of this work for the bestof Shrewsbury. I am passionate about living and working in Shrewsbury promoting the people, businesses and services which operate...

Popular Categories