The Chancellor’s budget bringing more flexibility for pensions savings, an increase in child care allowances and support for business expansion has been welcomed in West Suffolk.
The budget which, George Osborne said would ‘build a resiliant economy’ benefits working families who would receive a childcare subsidy up to £2,000 per child under 12 for families earning under £150,000 a year. This would be administered through an online account which would afford them a 20 per cent rebate on annual costs of up to £10,000 a year.
There was good news for Bingo halls with Bingo duty halved to 10 per cent but bad news for offshore bookies who will now have to pay tax.
Duty on whisky and ordinary cider is frozen and there is 1p off beer duty.
The main boon is for those with pensions with the removal of the requirement to take an annuity from a pension pot. Rather than taking a quarter in cash and the remainder as an annuity people can draw down from the remaining pot and would only be taxed at the normal rate of income tax 20 per cent rather than 55 per cent.
Isas become simplified with a maximum of £15,000 which can be invested tax free in a mix of cash and stocks and shares Isas.
The fuel duty planned for September will not be introduced.
Nick Plumb, financial advisor and Bury Free Press columnist, said the budget was very good news for savers and those coming up for pension age. ”For the average working family it’s a very encouraging budget for people wanting to save and those coming up for retirement.”
John Dugmore, chairman of Suffolk Chamber of Commerce said: “The Chancellor’s focus on investment, exports, housebuilding and economic resilience passes the business test. By making a better business environment his top priority the Chancellor has recognised that successful and confident companies are the key to transforming Britain’s economic recovery into one that is felt in homes and on high streets.”
Rooney Anand, chief executive of Greene King, said: “This cut in beer duty which we will pass onto our hard-working licensees immediately, will facilitate more investment and employment. If this leads to further cuts going forward then it could provide significant help to stem the tide of pub closures.Overall, today’s budget is not a game changer, but it does go some way to addressing some of the issues both within our industry and the wider economy.”