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A Summary of The Budget 2009

by Hannah from money.co.uk •  • 22 responses

At 12.30pm on Wednesday 22nd April, 2009 Chancellor Alistair Darling officially announced details of 'The Budget 2009'.

At 12.30pm today (Wednesday 22nd April, 2009), Chancellor Alistair Darling announced details of The Budget 2009. 

We have summarised the changes that will have the biggest impact on most of our finances in the table below. 

Savings, Investments & Pensions
ISAs
  • The total annual ISA limit will be increased to £10,200
  • The cash ISA allowance will be increased to £5,100
  • These increases will be introduced this year for individuals over the age of 50 and next year for everyone else
Pensions
  • Guaranteed increase in basic state pension by at least 2.5%
  • Winter fuel allowance increase (£250 for those over 60 and £400 for those over 80) has been extended for another year
  • Pension credit limits will be increased to £10,000 from November, 2009
   
Tax
Income Tax
  • There has been no change in the current tax bands for those earning less than £150,000
  • From April 2010 income tax will increase to 50% for those who earn more than £150,000
  • From April 2011 pension tax relief will be restricted for those with incomes over £150,000 and will be gradually tapered to the 20% applied to lower earners
  • Personal allowances for those who earn more than £100,000 will be withdrawn from April 2010
   
Alcohol & Tobacco
Alcohol
  • Alcohol duty will increase by 2% from midnight tonight
Tobacco
  • Tobacco duty will increase by 2% from 6pm this evening
   
Transport
Transport
  • £2000 discount on new cars when part exchanged for a car over 10 years old
  • This scrappage scheme will be introduced next month and will run until March 2010
  • Fuel duty will increase by 2p per litre in September
   
Tax Credits, Benefits & Allowances
Tax Credits
  • Child element of child tax credit will increase by £20 from April 2010
Benefits
  • Additional £100 a year government-funded contributions to child trust funds for children with disabilities
  • Additional £200 a year child trust fund contributions for children with severe disabilities
Allowances
  • Statutory redundancy pay will increase to £380 a week
  • Grandparents of working age that care for their grandchildren will see this count towards their entitlement for the basic state pension
   
Employment
Employment
  • £1.7billion funding for the Job Centre Plus network
  • Additional support for those who have been out of work for more than 12 months
  • Guarantee that from January everyone under 25 who has been out of work for more than 12 months will be offered a job or a traineeship
  • £260million funding for training and subsidies to help young people get the skills and experience they need
  • £250million funding in 2010 & £400million in 2011 to fund college places for 16 and 17 years olds
   
Housing
Mortgages
  • The higher level of support available to homeowners who are out of work provided by mortgage interest schemes will be maintained for an additional 6 months while they look for a new job
  • UK banks will increase the availability of mortgage lending by around £20billion by the end of the year
  • Additional £80million funding for Home Buy Direct, the government's shared equity mortgage scheme
Housing assistance
  • £500million extra financial support for housing projects that have been stalled due to the credit crunch
  • £100million funding for local governments to build energy-efficient housing
  • £50million funding to accelerate the modernisation of housing for those in the armed forces
Stamp duty
  • Stamp duty suspension on properties sold for less than £175,000 extended until the end of the year
   
Environment
Environment
  • £1billion of funding to combat climate change
  • 34% cut in carbon emissions by 2020
  • £435million support for energy efficiency in homes, schools and public buildings
  • £525million support for offshore wind projects
  • £4billion funding for renewable energy projects in UK
   

Responses (22)

novice

may I say once again nothing for carers again it does amaze me when the law says people must have a certain amount of money to live on what about us that have given up our jobs to look after a member of family I am sure we are worth more than £53.10 a week . for a 168 hours a week . think 0.3p an hour is fair deal for any one.thank you MR darling .I wonder how many carers are are out there saving MR darling trillions

by FROMALLTHECARERS, 2 years ago
novice

Well as per usual the working man is out of pocket again. Why not make free bus passes for the elderly means tested as the elderly are much richer then the low paid

by IanHill, 2 years ago
novice

This Budget has done very little for the pensioners, especially those without the benefit of occupational pensions, but it has to be said that it is a step in the right direction.

Given the lack of job opportunities for anyone over 50, and even less for those of over 60, would it not be sensible to increase the earnings limit tax allowance for people at 60 and thus encourage more people to retire leaving more jobs available for the younger generation?

by ElizabethDavies, 2 years ago
novice

They are going to guarantee anyone under 25 a job or apprenticeship if they have been out of work for 12months +...how? who are going to employ these people? everyone is going bust....

oh yes lets tax the higher earners (business owners) so they have less money...then they will be able to employ more staff... NOT.

What are these people doing?? We're all screwed ...

by MatthewThomas, 2 years ago
novice

We need new nuclear power stations NOW!!! (or disaster will strike).

by NiallSimpson, 2 years ago
novice

If they [the goverment] introduce the £200 rule JUST for turning up will the average person get the same just for turning up for work - by that I mean everyone who works??

by thomasbowden, 2 years ago
novice

I have been on Incapacity Benefit now for over a Year, I get £166 fornightly. When will the ones that are genuinely ill receive cold weather payments as do the pensioners? When will our money go up to a decent sum?

I do not think this is fair on us.

by BeverleyJory, 2 years ago
novice

no thought to small businesss at all. rubbish this government could not run a christmas club

by AnnNewby, 2 years ago
novice

i dont believe that this budget has common sense or does this country justice the level of debt that all of us will incurr is astronomical even if this government is replaced the next government will face a hugh challenge which has unfairly been placed on their shoulders and so, how can they fix the mess that thisgovernment has created for us all im not in politics but a hard working individual of this country the harder you try to work and support your family the harder you are penalize but people who are out of touch with reality because the jobs they do in politics are protected by hugh pay, pensions and earnings that increase with each year while the rest of us see squaddering, corruption and exploitation and mis- funding of our money the tax payer.Increasing fuel prices is unjustifiable people have to get to the few remaining jobs they have and the public transport is a joke especially in rural areas

by AnnieSergison, 2 years ago
novice

It is stupid to scrap a perfectly good car, then burn more oil than that car will consume for the rest of its life just to build a new one.

The sum that matters is true cost, not money cost. In other words true value of materials and energy, the $ bill cost is of no importance, anyone can print more dollars

Graham

by GrahamSingleton, 2 years ago
novice

i think it is resonable for higher earns to pay more. i no that we the motorist always be the target by add money on products without pay increase for we lower earners which i found as unfair.

by charlesibeh, 2 years ago
novice

It is a reasonable attempt to meet the current situation.More in the way of job creation would have been a help to get people into work especially in work that is desperately needing to be done in the road system in the country.However the borrowing is a very worrying factor and especially if some of the anticipated forecasts fail to materialise.

by AllanMacArthur, 2 years ago
novice

What can one say! On the one hand those who can afford to save will be able to put more into ISA's but the reality is that those who earn more are going to be penalised, are we going to see people manipulate the system to earn less than £150,000 so they will be better off? These are the people who will spend the money! The benefits are ill thought out, my daughter made redundant in December asked if she could go on a training scheme to help her prospects of gaining employment only to be told she had to be unemployed for a year, something is wrong with that. This budget takes far more than it gives. The shared Home Buy Direct is also manipulating people; my advice is to see a good solicitor before signing up to one of these incentives which could cost you a fortune. A terrible budget for everyone, I am able to advise Alistair Darling on basic household management, for two years we lived on an extremely low wage but cut our cloth to suit, we never became overdrawn because we budgetted!

by FrancesDavis, 2 years ago
novice

I would have liked the level at which tax starts to be paid to have been increased.

by Auriol, 2 years ago
novice

has anything happened to dla and carers allows

by sandymartin, 2 years ago
novice

I think that it is a lot of rubbish again!

by God, 2 years ago
novice

Smoke and mirrors telling everybody that things will get better. Only when they are booted out. We know, they know and they know we know!!

by Michael, 2 years ago
novice

Top earners should be hit harder the average person in this country is trying to live off the crumbs that are falling off the plate whilst the people who have the actual slices of cake are able to live off their expenses and not even touch their wages it's immoral this includes all MP's.

by KeithTownsend, 2 years ago
novice

This is an absolutely appalling BUDGET as we as a Country are already in enough debt without having to go further in the red.

The chancellor has done nothing to give us confidence that the economy will recover, he has not even attempted to get people back to work. And where is the money coming from to supposedly help the economy. as usual out of our pockets again, The rich are still getting richer at our expense by this I mean tax releif on foriegn properties.

I am one of the unemployed desperately trying to find employment he has not even had the decency to offer us proper help. Its about time this Government realised we are sick of their lies.

Because the British people deserve a better deal than what they are getting.

I have applied for over 500 jobs in 6 months and not had more than 5 interviews with 2.1 million unemployed where is the money coming from to re-train people especially when the country is in this mess.

Stop treating the British people like idiots.

by KatrinaMeyrick, 2 years ago
novice

The government is bankrupting future generations to pay for their failures.

by MarianneMartyn, 2 years ago
novice

Overall a better budget than I was expecting. As a Pensioner 2.5% increase in pensions is acceptable and the extention of the winter fuel allowance is good.

However, I do not beleive the state pension to be enough and should be linked to wages, but feel in the present climate it was to much to hope for, so overall feel satisfied, but will keep campaining.

by MaryDyer-Atkins, 2 years ago
novice

I have difficulty understanding why the duty on petrol has gone up £ 0. 2p per litre when that means many small businesses will suffer as a result. Also so many people I know cannot afford to live where there work is and have to commute, which means that their low incomes will be hit by this tax as no allowance has increased for low wage earners.

by lindahall, 2 years ago
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