Chancellor unveils Budget 2010


The Pre-Election Budget has been delivered today by Chancellor Alistair Darling with items such as stamp duty changes confirmed.

The Chancellor said stamp duty will be abolished on house purchases up to £250,000. The change, which will apply this year and next year, means 90% of first-time buyers will not pay the duty.

Furthermore, Mr Darling said stamp duty on properties worth more than £1 million will rise to 5% - thereby targeting higher-earners.

However, the focus was on how the Government plans to trim the budget deficit

Mr Darling has previously pledged to halve the budget deficit in percentage terms over the next four years and while he is facing pressure to cut the deficit more quickly, he argues that the economic recovery is still too fragile warned that cutting the deficit too quickly could pose a threat to the recovery.

He also reiterated this in today’s budget.

He told MPs that the windfall tax introduced on bankers’ bonuses had already brought £2 billion into the Treasury - double the amount expected.

As a result, Mr Darling said borrowing this year would be £11 billion lower than previously forecast at £167 billion.

In the meantime, a series of proposals for assisting small businesses, encouraging growth and dealing with the banking system were unveiled.

Furthermore, fuel duty increases will be staggered, rising by 1p at a time in April, October and January, while taxes on beer, wine and spirits will rise from midnight on Sunday, said the Chancellor.

Turning to the banking system, Mr Darling said he wants to recover the cash used to bail out Britain’s banks and pledged to “get all taxpayers’ money back.”

Finally, the Government is sticking with its forecast that the economy would expand by 1% to 1.5% in 2010, but lowered their forecast for 2011 to 3% to 3.5% against the 3.25% to 3.75% in last autumn’s Pre-Budget Report.

Tags: , , , , Chancellor Alistair Darling, , , , small businesses, , , trim

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