Today’s the day we’ve all been waiting for – especially those of you with a Money Observer magazine subscription. Today’s the day we found out what the government have decided on our budget for the coming year.
There are mixed reactions as some will benefit from the changes, whilst others will find themselves worse off. The biggest changes are perhaps that the 50p top rate of income tax will be cut to 45p, the personal income tax allowance was raised to £9,205 meaning that 24 million people will find themselves £220 a year better off but the high earners tax threshold is reduced from £42,475 to £41,450.
Also, pensioners will no longer be given an age-related allowance, leaving many pensioners an average of £83 a year worse off.
Bad news for those who like to indulge in cigarettes and booze too – packs of cigarettes will increase by 37p and the price of a pint will go up by over 5p – not likely to break the bank but it all adds up!
We know that something needs to be done to get us out of this economic slump we’re struggling to escape from, so let’s hope these changes will be for the better. Only time will tell we suppose!
If you like to keep on top of your finances, subscribe and save on a Money Observer magazine subscription today.
Posted by Arabella Gibson.