Budget 2012: winners and losers

Budget 2012: Winners

  • Low to middle-income earners – The rise in the personal allowance to £9,205 from April 2013 will mean the average basic-rate taxpayer will be £220 better off a year. 
  • Middle-income parents – The gradual phasing out of child benefit for those earning more than £50,000 is an improvement on the initial proposal to scrap it for any families with a higher-rate taxpayer.
  • Members of the Armed Forces – An extra £100 million is to be spent on improving military accommodation. Personnel serving overseas will also receive 100% relief on the average council tax bill. In addition, the family welfare grant has been doubled.
  • Broadband users – Osborne has pledged an extra £100 million to improve the speed of broadband across the country, creating ‘super-connected' cities.
  • Cyclists – Transport for London is set to receive an extra £15 million to improve cycle safety across the capital.
  • Rail users – The Chancellor has announced plans to upgrade the TransPennine route between Manchester and Sheffield and further improvements to the lines between Manchester and Preston, and Manchester and Blackpool.
  • Drinkers – The rise in the alcohol duty remained unchanged. This means it will increase by 2% above inflation. Not great, but it could get a lot worse after the imminent publication of the government's Alcohol Strategy.
  • Small businesses – Simplification of the tax return process will relieve an administrative burden on small firms. A new £20 billion National Loan Guarantee scheme will also provide discounted loans to companies with revenue of less than £50 million.
  • Businesses – Corporation tax will be cut to 24% from next month, and to 22% by April 2014.
  • Pensioners (although in the losers section too)  – The state pension is set to be simplified into a single-tier state pension set at around £140 a week and based on contributions.
  • Young people – Enterprise loans set to be introduced later this year for those wanting to set up their own businesses.
  • Home builders – Extra funding to go to help construction firms build new homes.

Budget 2012: Losers

  • Higher earners – 300,000 more people will be drawn into the higher rate 40% tax band as the 2013/14 threshold is reduced from £42,475 to £41,450.
  • Higher-income families – Child benefit will be phased out if someone in a household has an income of over £50,000. It will fall by 1% for every £100 earned over £50,000. While those earning over £60,000 will lose the benefit completely.
  • New pensioners – The age-related personal income tax allowance is going to be removed for new pensioners from April 2013. It will be replaced with a single personal allowance for all. HM Revenue & Customs estimate that this will leave 4.41 million people worse off in 2013/14 with an average loss of £83.
  • Future pensioners – The state pension age is going to be automatically reviewed to make sure it keeps pace with increasing longevity – so we're all going to be retiring later and later.
  • Wealthy homeowners – Stamp duty on property purchases worth more than £2 million will rise to 7% from midnight, meaning anyone buying a house of that value will have to hand over £140,000 to the taxman.
  • Shop workers – Set to work longer Sunday hours during the Olympics after Osborne announced an extension of the Sunday trading laws for eight weeks starting from 22 July.
  • Smokers – Tobacco duty will rise by 5% above inflation from 6pm tonight adding 37p to the average pack of cigarettes.
  • Banks – The bank levy is being increased by 0.105% from January 2013 to make sure banks don't benefit from the corporation tax cuts.
  • Motorists – The much hoped for reduction in fuel duty hasn't happened leaving motorists facing soaring petrol costs.

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Your Comments

Well, pensioners hit again! Bad interest rates, now tax increases too. Incidentally the treasurere figures seem a bit careful. They are only talking of this years increase. Freezing the personal allowance will, ultimately, cost all tax paying pensioners very much more than the estimate given.
In my case I shall reduce my spending again to try and meet the worsening situation. That will not help the econonmy.
And if Osborne seriously expects the millionaires to charge in and hand big sums over, he has got to be the optimist of all time!
Nothing in this budget fills me with much hope.

I think that diesel fuel should be controlled at £1.20 and unleaded 1.35.
What is going to happen when fuel reaches £2.00 ?
Fuel is not expensive in bulk. Something else is afoot here.
Everything goes up when fuel goes up.
I wonder if MP's/government really care? Do they tale a 10% pay cut to keep their jobs?
If fuel prices go up..do Mp's reach for their expense forms?
I think the government want to eat their cake and allow the country to slim.
I can see riots and extra crime because of what the government is not doing.
I also believe that the government should cut £1 billion in overseas aid.
Also should not keep on with expensive projects until we pay back our debts. Whatever happend MP's hardly feel the pinch.
Any MP, their families, directly or indirectly belong to a company dealing in contracts for the government etc, should not be allowed to tender.

I certainly agree with cuting back on foreign aid. I heard a statistic the other day that there are more millionaires in India than in the UK, so why are we still sending them foreign aid?! They should be helping their own people or sending aid to the UK!