At a glance: All the crucial points from Osborne’s emergency Budget June 22, 2010 THE ECONOMY/PUBLIC FINANCES • The Office for Budget Responsibility (OBR) published fresh forecasts in light of the measures announced yesterday by chancellor George Osborne. • GDP growth will be 1.2 per cent in 2010, accelerating to 2.3 per cent in 2011, 2.8 per cent in 2012 and 2.9 per cent in 2013. The pace of [...]
Great progress on the deficit – but far too many unnecessary tax hikes June 22, 2010 WE?were told to expect a tough Budget, with lots of pain, and that was exactly what we got. Many of the policies announced were necessary; others, however, are clearly misguided. On balance, however, this Budget will leave Britain in a stronger position –?not something that could usually be said of the previous government’s efforts. George [...]
Labour goads Lib Dem MPs over VAT hike June 22, 2010 HARRIET Harman launched a scathing attack on the Liberal Democrats yesterday, claiming they had “sacrificed everything they ever stood for to ride in ministerial cars”. The acting Labour leader said George Osborne’s Budget would “throw people out of work” and hurt economic growth, as she sought to paint the Lib Dems as spineless coalition partners [...]
Coalition avoids capital gains revolt but tensions remain June 22, 2010 A COMPROMISE over higher capital gains tax has stopped a Tory rebellion in its tracks – but there is growing tension in the Liberal Democrat party over higher VAT. The coalition government yesterday increased the top rate of capital gains tax from 18 per cent to 28 per cent, a much lower rate than the [...]
Tame increase in CGT brings cheer to City June 22, 2010 CHAMPIONS of enterprise breathed a sigh of relief yesterday as chancellor George Osborne stopped short of fully bowing to Liberal Democrat plans to raise capital gains tax (CGT) in line with income tax. Osborne used his inaugural Budget to introduce a new 28 per cent rate of CGT for higher-rate taxpayers, effective from midnight last [...]
City gives lukewarm thumbs up to Osborne’s plan June 22, 2010 CITY stalwarts displayed cautious approval in the wake of the emergency Budget yesterday, as the chancellor’s plans settled some nerves over UK spending. CBI director-general Richard Lambert said the five-year route map for corporation tax “provides much-needed consistency and certainty”, which combined with proposals on foreign profits and intellectual property could reverse the tide on [...]
WHAT DOES THE CHANCELLOR’S BUDGET MEAN FOR YOU? June 22, 2010 KATE SOLWAY, 30 FUNDS CONTROLLER AT PRIVATE EQUITY FIRM COGNETAS Kate is single and lives in rented accommodation. She also owns two investment properties – one a London flat with a mortgage which she rents out, and the other a holiday home under construction in west Africa’s Cape Verde, on which she does not have [...]
Holiday homes win tax break June 22, 2010 THE government has reinstated tax breaks for furnished holiday lettings, though the chancellor warned yesterday that it would consult on changing the allowances in 2011. The restored rules apply to around 120,000 landlords who run holiday homes. Osborne stressed the importance of tourism to the UK economy in his Budget speech. “There are many small [...]
OSBORNE TAKES FIZZ OUT OF THE CHANCELLOR’S DRINKS CABINET June 22, 2010 JUST six weeks into the new Lib-Con love-in, and the biggest mystery of the coalition has finally been put to bed. No, not how ultra-liberal Vincey is getting on with his toffier-nosed colleagues behind that pasted-on grimace, but whether or not Boy George is ready to join his predecessors in a cheeky Budget tipple. Seasoned [...]
The Budget: What do you think? June 22, 2010 GEORGE Osborne yesterday delivered his debut Budget. Key measures included raising VAT to 20 per cent and cutting back on welfare provisions. The ambitious package contains the toughest raft of austerity measures in the post-war period. But will it be a success? Has the new chancellor done enough to plug the yawning Budget deficit? In [...]