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Budget Report

Chancellor George Osborne delivered his 2015 ‘pre-election’ Budget. Proclaiming that ‘Britain is walking tall again’, the Chancellor announced that the national debt target has been met and predicted the ‘end of austerity’ a year early.

The Office for Budget Responsibility has revised economic growth slightly upwards from 2.4% to 2.5% for 2015, while inflation has been revised down to 0.2% and borrowing levels revised downwards from the previous Autumn Statement forecast, to £90.2bn for 2014/15.

However, despite assigning significant funds from bank asset sales and lower welfare bills to ‘pay down the national debt’, the Chancellor announced plans for further deficit reduction.

While keen to emphasise the benefits of ‘sticking to the fiscal path’, the Chancellor found room for a number of measures for individuals and businesses.

Budget Highlights

  • Income tax personal allowance to reach £11,000 by 2017
  • ‘Radical’ business rates review before 2016 Budget
  • New Personal Savings Allowance from April 2016
  • Digital tax accounts to replace annual tax returns
  • New Help to Buy: ISA for first time buyers
  • Increased flexibility for cash ISAs from Autumn 2015
  • Rules on annuities to be relaxed from April 2016
  • Pension lifetime allowance to fall to £1m from April 2016

 

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