Was it good for you? George Osborne’s 2016 Budget, delivered to a packed House of Commons on Wednesday, has drawn criticism over a looming £55 billion black hole in public finances. But what does it mean for your money? We published a guide to the main changes yesterday. Today Spectator Money looks at reaction to a Budget lauded for pleasing middle England.
Income tax
More than half a million people will save £400 a year thanks to a rise in the 40p higher rate tax threshold to £45,000 from next April (with the Chancellor sticking to a pre-election pledge to hike the threshold towards £50,000 by the end of the parliament). Iain McCluskey of accountants PwC said: ‘Tethered to his manifesto promise not to increase headline tax rates, [the Chancellor’s] moves could be seen as tinkering rather than transforming. He used the little money he had to take more people out of the 40p tax band, a reminder to middle England that he is looking out for them.”
As for the personal allowance, which will increase to £11,500 in April 2017, Simon Whiteside, tax executive director at EY, the global professional services firm, said: ‘Many basic rate taxpayers will benefit from the increase to the personal allowance.
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