Budget 2014 Overview

Published / Last Updated on 21/03/2014

Budget 2014 Booze, Fuel and Other

To quote the Chancellor, he said the government aims to: “Fix the roof when the sun is shining to protect from future storms”

House Prices - the Chancellor confirmed they were watching the housing market risk

Foreign Reserves - the government are building up reserves of foreign currency and that levels are now double that under the Labour Government. There was no mention of Gold reserves.

Foreign Aid - confirmed 1.7% of National Income to be gifted to world’s poorest and needy.

Welfare Reform - Confirmed a £1bn reduction in welfare spending. The government are to make welfare spending law. In simple terms, it is going to made law to have a spending cap on welfare. This means that future governments must change the law to increase spending on welfare unlike the current position where depending upon what their political persuasion is, they spend what they wish. Only state pension and unemployment benefit will be restricted by the spending cap.

HMRC are to be given increased powers to seize assets for tax avoiders. They are also going to be allowed to force a disputed tax bill to be paid up front and then it can be settled in court later. i.e. pay now and get it back if you win. He claimed HMRC are collecting twice as much from offshore tax avoidance as before and it will bring in £4bn additional revenue.

Financial Services Fines are to paid to military charities and now also search and rescue and lifeboat groups. Using ‘bad boy’ fines to pay for the ‘good guys’.

Inheritance Tax to be waived for those people who lose their lives whilst serving on active service or as part of the emergency services.

Inheritance Tax - no changes to the individual nil rate band threshold, still at £325,000.

Air passenger duty changes – all long haul flights will be same as US duty

Start up support – for business airports – incentives for local airports to encourage local airport development.

Housebuilding – reforms to planning permission and funding for smaller builders. Plans to build 200,000 new homes.

Additional funding for Wales to raise taxes for funding for infrastructure in addition to the more funding for the Liverpool Mersey Gateway Bridge.

Doubled number of apprentices + develop degree level apprentices

Extending Film Tax Credit – to 20% tax relief to tax for next few years

Decreasing fuel duty on economic cars and help for business to be economical

Freezing council tax

Fuel duty will not rise

Raising gambling duty to 25% and taxing offshore online gambling

Bingo Duty currently 20%, is going to cut down to 10%

Tobacco 2% over inflation – extended until 2015

Alcohol – scrapping automatic alcohol price rises