The Budget 2012
Live coverage as Chancellor George Osborne presents his Budget for 2012.
- Morning all. I would be surprised if we were to see any major events during the budget, the treasury has been leaking like a sieve of late. Following the budget, we may see the leader of the opposition calling for more spending on electronic infrastructure, as to quote a well known comedian, "a lot of the country doesn't get Miliband".
- an aspect of the budget that often gets forgotten is the need to SIMPLIFY our appallingly complex tax system
- The most significant move today may be the introduction of "taxpayer receipts", which break down each person's tax bill by area of government spending. Will probably increase opposition to tax & spending. Good mock-up here – many will be surprised to see how their money is spent: www.telegraph.co.uk
- David Kuo, Director at online investing community The Motley Fool, says:
“The Budget should aim to achieve three things today: It should continue with the deficit-reduction plan; it should spur economic growth and it should maintain political harmony within the coalition.
“It is possible to achieve all three and still remain fiscally neutral. In other words, every tax giveaway should be balanced by a tax claw-back elsewhere to enable the UK to maintain its triple-A credit rating.
“The Budget is unquestionably a key event in the UK political calendar. However, investors need to appreciate that Budgets have little impact on the performance of shares.
“The FTSE 100 index, for instance, is a barometer of the health of global economies. What happens in the UK and the UK economy is largely unimportant to the UK’s blue chips given that their main source of revenues and profits come from abroad.
“Do, however, make a note of the increase in ISA allowances and other incentives that encourages saving and investing for the long term. But don’t be distracted by politically-driven tax measures because investing is more important than that.”
- Morning all, here's hoping for a budget that helps the squeezed middle! Though from the number of leaks I think we know most of it already!
- Good points David, I think the updates on small businesses, reducing corporation tax and EIS, etc is really key
- On a more serious note, the only real way to save this economy is to scrap impotent institutions such as the NHS, which has more managers than medical staff, and replace it with state sponsored medical insurance. The bloated and overpaid public sector as a whole should also be in the chancellor's sights, if we are ever to remove this millstone from our collective necks. Alas these are but pipe dreams. Another bone of contention is foreign aid to countries which will only become effective democracies in their own time, not by having billions of pounds of "the taxpayer's" money rammed down their throats. We spend around 20 BILLION pounds on foreign aid, money which could be better used helping our own denizens, or better yet, paying down the debt.
- On the personal tax statement - this could prove to be a good idea in theory but unworkable in practice. Questions include: what to do about indirect taxes, taxes levied via employers, etc ...
- My budget priority would be to engineer a fiscal stimulus without adding to the deficit, as the SMF proposed recently.
- It would be a dream to see VAT scrapped on energy and Fuel tax cut, that would make millions of people feel happier!
- When will this Coalition address the obscene cost of childcare in England. I pay over £900 per month. What about a significant cut in fuel duty as well?
- Hi everyone, Kathleen here from Forex.com - the countdown begins.
- Interesting to see the speculation about a further corporation tax cut. A reduction from 23% to 20% in 2014 would cost something like £2.4bn. If the chancellor can find that kind of money, as well as the cash for a rise in the personal allownace, then there are going to be some big losers we don't yet know about.
- Neil Prothero, lead UK Analyst at the Economist Intelligence Unit, has commented on the 7 percent stamp duty on properties over 2 million pounds.
He says: "A quid pro quo by the chancellor, alongside plans to clamp down on tax avoidance and pension relief among the very highest earners, in order to provide room for the politically contentious cut in the top rate of income tax from 50% to 45%.
"There has been a sharp rise in the number of £2m+ homes sold in the UK over the past year, the vast majority to foreign buyers in London, so this tax grab can be expected to bring in some extra revenue for the Treasury. But it’s an incremental change, when many would argue that more fundamental reform of the way in which housing is taxed is required, with a particular focus on the taxation of second (or third) homes or introduction of a land value tax."
- Good morning, I’m Stuart Johnson from Level 3. Very much looking forward to the Chancellor’s speech today, particularly anything he has to say around public sector budgets and any cuts to spending.
- BBC's Robert Peston tweeting that a rise to 7% for stamp duty could raise GBP700mn a year, based on the last two years of transactions, not something Osborne is likely to snivvle at especially after today's borrowing data.
Britain's Chancellor of the Exchequer George Osborne, holds his budget case for the cameras as he stands with members of his Treasury team outside number 11 Downing Street, before delivering his budget to the House of Commons in London March 21, 2012. REUTERS/Suzanne Plunkett
- So that settles one of the big questions on Budget day - Osborne is wearing a BLUE tie.
- For those of us in the property development industry it will be interesting to see if the NPPF is published today after the budget...currently mixed rumours about!
- The Budget is always a closely-watched event but this year the chancellor will be under particularly intense scrutiny as the downgrading of the UK economic outlook and potential downgrading of our coveted AAA credit rating make for what is likely to be a belt-and-braces announcement.
Although fiscal conservatism (with a small c’) and general nervousness are understandable, the government needs to ensure that it does not throw the baby out with the bath water. Cautious bets on potential growth areas are needed if the economy is not to suffer
Technology remains one of the few major levers we can pull to drive a modernised economy and George Osborne needs to show he is looking towards a brighter future rather than merely negotiating the present. These might be dark days for the economy but they come at a time when technology offers some lucrative possibilities. From clean-tech to cloud computing, smart utilities to electric vehicles and from computer games to social networks and location-based services, the technology world continues to move very quickly and you don’t need to be an expert to see that the first-movers at these times of opportunity tend to be the ones that are successful.
So, without expecting a Budget full of ‘give-aways’ we are calling for investment in technology to aid the UK’s competitiveness and cash in on our pockets of excellence.
Tax breaks that help technology businesses to hire and reward investment in core research and development, and to some extent exploitation of that R&D, would be a good start if we are serious about encouraging entrepreneurs in high growth areas, rather than losing them to the US or a host of other countries from India to Brazil that are capitalising on their technological prowess.
As a company with a long history of supporting smaller concerns we’d also like to see more incentives for others to do the same and we’d applaud any moves to get our colleges and universities even more aligned with the private sector.
The pre-Budget rumours are of calls for tax relief for video games companies (1) and a new Science and Technology Institute (2) by the Olympics site. Whatever the merits of these individual projects, a combination of encouragement for businesses today and at the grassroots for the technologists of the future is absolutely the correct combination. While being realistic available investment we maintain that a Budget that fosters the innovative and bold will set an important blueprint for the future of the country and help generate the necessary confidence to approach the future with a view to opportunity and not just risk avoidance.
- If there is one thing I'd like to see in the Budget it is that George targets the tax TAKE, not tax RATES. He should be getting the rich to pay more tax. He should not assume that this is done with elevated tax rates.
- Hello Tony Dolphin from IPPR signing in.
- The second most important question after Osborne's tie is will there be another raid on pensions later today to help boost youth employment schemes????
- The BBC is trying to hold a pre-budget chat on Abingdon Green outside the Commons. I'd like to tell you what's being said, but they're being drowned out by Tax the Banks protesters.
- This time last year, the Government announced significant spending reductions. Personally, I believe this tight fiscal approach needs to continue to ensure continued focus on transformational change and the follow through on key initiatives. So unlike many today, I’m one of the ones who’ll be hoping George Osbourne will actually cut budgets!
- Rumours that budget will contain some info about the forthcoming Communications Bill, which will regulate internet and IT sector. I'll be listening carefully to that part – the Comms Bill won't be good news but it may be less bad than many fear.
- Cut child benefit from higher rate tax payers absolutely those on higher rates should not be claiming benefits. Cut pension allowances for higher rate tax payers - idiotic and unfair as we they are making provision so they will not be a burden to the state in later life. Osborne needs to look seriously at cutting the amount of benefits available and how they are used - after all the welfare state was brought in to lift people out of dire poverty not pay for cable tv and hair extensions!
- And another thing...stamp duty. Is that an effective tax? Does it impede domestic demand (building work, carpets etc) by halting transactions? Surely a better way to get the rich to pay more mansion taxes is look at capital gains. After an index linked allowance of say #500,000?
- Sheila Lawlor from Politeia joining the discussion. Hello everyone
- BBC's Andrew Neil (@afneil) tweets:
"Lib Dems to call this Robin Hood Budget thanks to them. But will not get tycoon tax or mansion tax. Only mild variants at best #budget12"
- Is this the leakiest Budget ever? We wait to see whether the Chancellor still has a few cards up his sleeve.
- My quote of the day is from John Stepek in MoneyWeek:
"If Christmas Day had an opposite, it would be Budget Day. On Christmas Day, a man in a red suit gives you presents. On Budget Day, a man with a red box tries to steal what he can from you."
- This will be a fiscally neutral budget, any signs offreebies or giveaways and the UK can say goodbye to its triple A credit rating.
- So where will the Chancellor focus any
available funds? From a networking, IT and telecoms perspective, I’d like to see the Government continue its deployment of the Public Sector Network; a ubiquitous networking platform for the civil service which has the potential to deliver more than £1.2 billion savings over the next couple of years, while it must also continue its work around the G-Cloud programme.
- The Lib Dem labeling of the Budget as a Robin Hood one highlights the importance of "fairness" in these debates - but is their policy of increasing the personal allowance really fair? We've estimated only £1 in £14 of an increase in the allowance to £10k would go to families below this level
- Agree they should introduce CGT on all property gains in place of SD. Will never happen though.
- Those of us who dont pay 50% but have lost all personall allowances, paying 60% tax between 100K and 116K just expect to get hammerred again - the removal of personal allowance cost me a whole months take home pay - feel like an easy target
- Re "Robin Hood Budget": do LibDems think comparing themselves to a gang leader whio stole from the rich is a good idea?
- And does tthat make Milliband the Sheriff of Nottingham?
- Barcap has called this the Budget of small numbers - I tend to agree. Robin Hood Budget is a little too grand...
- In a BDO LLP ahead of the Budget, we asked businesses and individuals on their own priorities for tax reform. The main priority for all of our respondents was a broad based tax reduction. For business tax this involved both reducing the Employees' National Insurance contributions and corporation tax rates. The priority for individuals was to increase the personal allowance to £7,745 (2011/2012) to £10,000. Both messages are clear, free up corporate and personal cash, enabling all to benefit the economy through greater spending powers.
- Richard Wellings from the Institute of Economic Affairs joining the debate. Hello everyone.
Tech glitch or budget commentary?
- Tax cuts funded by spending cuts to reduce total government expenditure would be a really bad move right now. Impact on economic output would be negative at just the wrong time.
- I agree that the focus on give aways should be freeing up personal and business cash, critical though is the credibility of how he balances the budget, which he must do to maintain instituitional support. I do have concerns that SD on £2m plus houses being bought by overseas nationals is not sustainable
- Recent Liveblogs
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- Andrew Hammond
- Tony Dolphin
- Thomas Story, BDO LLP
- Richard Wellings
- Reuters: Mark Kolmar
- L COPELAND
- Sheila Lawlor
- Patrick Nolan
- Tim Knox
- Ian Mulheirn
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