The Budget 2010

by Hannah from money.co.uk • 

At 12.30pm on Wednesday 24th March, 2010 Chancellor Alistair Darling officially announced details of 'The Budget 2010'. We summarise the changes that will have the biggest impact on most of our finances in the table below.

Check the table below to find out how you'll be affected by the key consumer finances changes announced by Alistair Darling in The Budget 2010.

You can share your thoughts and opinions about these changes with others by posting your comments in the box below.

Savings, Banking & Investments
Banking
  • Basic bank accounts will be made available to all.
  • A new credit complaints service with the legal power to investigate and overturn declined credit applications is to be created.
ISAs
  • ISA allowances will be increased annually in line with inflation.
  • As planned, ISA allowances will increase to £10,200 for all on 6th April 2010.
   
Housing
Stamp duty
  • Stamp duty limits will double to £250,000 for all first time buyers.
  • Stamp duty on properties sold for over £1million will rise to 5%.
Mortgage Support
  • The Support for Mortgage Interest scheme will be extended for another 6 months at the higher rate.
   
Alcohol & Tobacco
Alcohol
  • Alcohol duty will increase by 2% a year until 2013 from midnight on Sunday.
  • Duty on cider will increase by 10% above inflation from midnight on Sunday.
  • A further increase in duty on strong cider will be introduced but the amount has not yet been confirmed.
Tobacco
  • Tobacco duty will increase by 1% today then 2% above inflation each year from next year.
   
Transport
Fuel
  • The increase in fuel duty planned for April will instead be introduced in stages.
  • Duty on fuel will increase by 1p/litre in April, 1p/litre in October and 0.76p/litre in January 2011.
   
Tax
Income Tax
  • The 50% tax for those earning over £150,000 a year will be introduced as planned.
  • Individuals earning over £100,000 per annum will see the value of their personal allowances gradually removed.
Other Tax
  • Inheritance Tax thresholds will be frozen for a further 4 years.
  • No increase in Capital Gains Tax.
  • Tax information agreements will be signed with Dominica, Belize and Grenada.
   
Employment & Education
Employment
  • The scheme that guarantees training or employment to all individuals under the age of 24 who have been unemployed for 6 months or more will be extended until March 2012.
Education
  • 20,000 additional university places will be created for those wanting to study maths, science and technology.
   
Tax Credits & Allowances
Tax Credits
  • Child tax credits for children aged 1 and 2 years old will increase by £4 per week from 2012.
  • Individuals aged over 60 will need to work fewer hours before they can claim working tax credits.
Allowances
  • Winter fuel allowance increase (£250 for those over 60 and £400 for those over 80) will be extended for another year.
   

Responses (14)

This is wonderful news for my daughter who is in the process of buying her first home. Her property is 130K so she will save £1300 on Stamp Duty which is a tremendous help – it couldn’t have come at a better time.

by Anonymous, 1 year ago

As usual the Labour budget hammers the entreprenuers, just because you have worked hard, paid taxes, bought a decent home and used your initative to get on in life, you are deemed to be the idle rich by this envious Labour lot. I am heartily sickened by their inability to grasp that one cannot go on and on getting into more debt. At the same time as hammering the entrepenuers, they think that removing the stamp duty [a pittance] is going to get the housing market soaring again, when banks/building societies are asking for much bigger deposits. How many young people these days have the opportunity to SAVE for a deposit. As for us the pensioners, they still have not raised the pension index link to earnings--something they were crying out for when they were in opposition.[hypocrites] We will be worse off more tax on cigs, more tax on drinks, more tax on petrol and car tax. I have not digested all the small print, but no doubt, when I do I will find many more hidden charges which will effect us. Roll on the Election Get rid of Brown & Co and the Union power, that is destroying Great Britain.

by Anonymous, 1 year ago

well that does absolutely nothing for me again,a single forty something with a 20 year old son.nothing why do we bother.

by Anonymous, 1 year ago

Well i personally think the goverment should stop being so damn greedy! they raise fuel prices but dont raise wages, and also it's ok for the people up to 24 to be sorted for employment ect ect but what about the people over 24? let the chancellor alistair darling be in our shoes! on a low paid income, and having to pay loads each week just to drive to work and then someone else puts the fuel prices up!! see if he copes with it all! our country has gone to pot because of our stupid government that like to be greedy and rip people of excessivley.....

by Anonymous, 1 year ago

I think it is wrong that he has again not increased the Personal Allowance Limit.

As a female 63 year old pensioner this does really affect my income as it means I have to pay more tax out of my very small pension.

by Anonymous, 1 year ago

I would just like to say that, I do not agree with any rise at all in petrol duty.

Motorists here are already getting a raw deal from this Government.

Crude oil is at it's lowest price for quite a while, yet here in England we are still

paying far more per litre than most other country's.

I think the Government should think hard before any further increase in Petrol

duty is imposed on our country. Do they ignore the fact that the country and

in deed The World are in an economic recession.

I also think that the Chancellor has again ignored the potentially devastating

effect on a County which relies on production of a popular product, Cider.

Somerset is going to suffer greatly at the hands of this somewhat crazy

Governments taxation greed.

by Anonymous, 1 year ago

Typical labour spin, trying to convince us they are working to make this a better country. Whereas we should be really wondering what their true aim is. Are they all communists at heart and trying to bring this country to it's knees? They took over when the country was in good shape financially, the unions were working with companies to make them better, and we had North Sea Oil and gas aplenty. Did they use that wisely? No so now that those stocks start to run down as forecast several years ago So what have they achieved in their 12 years in power? Gordon Brown sold our gold when the price was at rock bottom, if he had kept it to sell now he could have wiped out most of our debts. They allowed the banks to expand too fast for their own good as their staff chased large bonuses by taking ever greater risks until of course at last they all fell down. They have bailed out the banks without seeming to have got anything in return. The press tells us that some of the banks are effectively ow

by Anonymous, 1 year ago

Are the MP'S who are syphoning off tax payers money paying Income Tax on these amounts. If not WHY NOT. Is the House of Lords being filled up with crooks?

Should we rename it The house of Labour Crooks?

by Anonymous, 1 year ago

Total window show as all punitive measures were included in the Pre Budget Report and will come into effect post April. This is Govt glossing over hard facts that will have been forgotten by many, no mention at all in the Budget.

Basic financial and ethical requirements to at least make me feel inclined to believe these wonder men/women:

Increase personal tax thresholds in line with RPI immediately.

The increase in Child Credit, equivalent to 2 bottles of Cravendale milk and a loaf of bread per week, should be introduced immediately, by 2012 date advised, it may well be you will only get 1 bottle of milk.

Activate immediate criminal proceedings against tax dodgers/benefit fraud

Ban 'bye bye' payments to all MP's of any party who have been named as having 'bent' the system.

Get rid of the tiers of officialdom who sit in judgement of others, e.g.Standards Commitee who oversaw the rife misuse of expenses and now it seems freebie hols to buck the system for the countries who paid them to v

by Anonymous, 1 year ago

There was nothing in the budget for struggling single parents and no increase in child benefit to help the poor and no help for people on a very low income for extra money to help for winter fuel payments just the elderly. What about jobs for single parents? Term time jobs, Mon to Friday 9.30 till 2.30. We want to work just no one wants to enploy us for those hours. We still want to take our children to school pick them up and look after them at weekends. A change in the law also needs to be made so we choose who looks after our children not be dictated too by the government that it must be a registered child minder. We should be allowed to use our trusted friends and sill get child care credits to pay them.

by Anonymous, 1 year ago

Its really sad that 1st time buyers are in for such high stamp duty fees - why cant they increase the stamp duty on homes which cost over million - this seems fairer to me.

Also, in terms of transport, surely they need to bring down the price of trains and increase the price of fuel - is the government really interested in green, as I feel this would make a huge impact in terms of people choosing public transport instead of cars.

Also, I feel that there should be better options for mums who wish to study.

by Anonymous, 1 year ago

I think that the extra cider tax is a step too far for people who are afflicted with Coeliacs Disease.

This illness means you cannot consume wheat rye oats or barley.

Approximately 1% of the population has Coeliac Disease and already face extra costs in shopping around for foods they can eat which are usually more expensive because they are not 'bulked up' by the addition of wheat etc.

Cider is usually the most expensive drink in a pub but those people with Coeliacs disease cannot drink Beer or Lager and are stuck with the extra cost but now to add insult to injury we get picked on in the budget, this really does add insult to injury - a tax on the afflicted!

by Anonymous, 1 year ago

The rise in the stamp duty threshold level to £250,000 is welcome but should be for all buyers.

To limit it to 'first time buyers' is plain daft because its near impossible to enforce! Right now, there will be all manner of folk coming up with ways to get round this limitation.

Making it available to all buyers would have created a real stimulus to the property market and thereby brought in more tax revenue from all the associated services than would have been given away.

And what about the poor folk who have had to cough up since the previous tax holiday came to an end only a few months ago. Not very well thought out Darling! I wont be voting for you!

by Anonymous, 1 year ago

The one thing that i say should also be brought back is the reduced tax for married couples.

when you are under pension age and working we don't get nothing for just doing the right thing in life.

We just pay out all the time in full wack! And don't get nothing for nothing.

Also if this was brought back i believe more or these single couples would get married espicially when had children together and wopuld save the goverment money in the long run. As there are hundreds of couples out there that have chilfren but claim as single parents so get twice as much. or even if there are no children still manage to be able to claim 2 separate lots of money on social. i feel this should be stopped!

by JaniceMargaret, 1 year ago
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