Key Points of the 2013 Budget

Personally I saw a true Conservative Chancellor , reducing tax , corporate and income , right to buy .

I think these measures could be the kick start the country requires ,

Chancellor has placed a lot of faith in the new Bank of England Governor , this could be a smart move as he has given the Bank new powers .

As I type this the pound strengthened ,Gilt yields steadied showing that the markets liked the budget , and to tell the truth the markets are always correct .

Key points on the budget by deVere Group , click on the link for updates .

deVere Group -UK budget Update as it happened

UK Chancellor George Osborne has just started delivering the long-awaited 2013 Budget speech – the Budget for people who ‘work hard and get on’. More importantly, this is a Budget ‘for those who want to own their own home, get a job’.

Whilst acknowledging that the Government has cut the nation’s deficit by a third and created 1.2 million private sector jobs, Osborne assured that the 2013 Budget will combine ‘monetary activism’ with ‘fiscal responsibility’ and ‘supply side reform’.

OBR halves UK growth forecast for 2013 – now predicts 0.6% economic growth in 2013, 1.8% in 2014 and 2.3% in 2015. There will also be 600,000 more jobs created this year and 60,000 fewer people claiming jobless benefits.

The deficit will fall to 5.4% in 2014-15, according to Osborne. However, the OBR sees the 2012/13 budget deficit at 7.4% of GDP and 6.8% in 13/14.

Public sector net debt will peak in 2016/17. The supplementary target – that net public-sector debt would fall, will not be met.

Osborne is on course for a ‘fiscal mandate’ to balance the books over a rolling five-year period.

Total spending for 2015/16 has been set at £745 billion. Public sector pay increases will be limited to 1%.

Saga’s Ros Altmann commented on the Bank of England’s remit at 2% as ‘good but irrelevant’.

Britain is said to have the lowest rate of corporation tax at 20%. According to Capital Economics, this will cost about 400 million and will be paid for by an increase in the bank levy to 0.142% from 0.13%.

Osborne said that he will abolish stamp duty on shares traded on markets such as AIM – the London Stock Exchange’s international market for smaller growing companies.

The single tier pension will be brought forward by a year to 2016.

‘Shale gas is part of the future and we will make it happen’. The Government will introduce generous tax breaks to promote early investment in shale gas.

£3.5 billion will be set aside to provide shared equity loans to help buyers over the next three years. As long as a buyer has a 5% deposit, the government will give ‘anyone looking to move up the housing ladder’ a 20% equity loan, to be repaid when the house is sold.

The September fuel duty rise will be scrapped. Capital Economics estimates that this will cost the Treasury £700 billion.

The 3p rise in beer duty will be scrapped and instead a beer duty will be cut by 1p from Sunday.

The coalition government is to make ex-gratia payments of £5,000 to Equitable Life customers who brought with-profits annuities prior to 1992.


  1. No trackbacks yet.

You must be logged in to post a comment.
%d bloggers like this: