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| Q&A: What the Budget means to you | Q&A: What the Budget means to you |
| (about 1 hour later) | |
| Will you be richer or poorer as a result of the budget? | Will you be richer or poorer as a result of the budget? |
| Chancellor Gordon Brown has just delivered what could be his last Budget. What impact will the changes have on the personal finances of millions of Britons? | Chancellor Gordon Brown has just delivered what could be his last Budget. What impact will the changes have on the personal finances of millions of Britons? |
| I am in work, what is in the Budget for me? | I am in work, what is in the Budget for me? |
| The big news is that the basic rate of income tax has been cut by 2p to 20p from April 2008. | The big news is that the basic rate of income tax has been cut by 2p to 20p from April 2008. |
| At the same time, the 10p income tax rate on the first £2,150 earned (2006/2007 tax year) above your personal allowance is being abolished. | At the same time, the 10p income tax rate on the first £2,150 earned (2006/2007 tax year) above your personal allowance is being abolished. |
| This means in effect that you will have to pay 20% as soon as you earn more than your personal allowance rate. | This means in effect that you will have to pay 20% as soon as you earn more than your personal allowance rate. |
| In addition, the upper earnings limit for National Insurance will rise to bring it in line with the 40% income tax threshold. | In addition, the upper earnings limit for National Insurance will rise to bring it in line with the 40% income tax threshold. |
| As a result, high earners will pay more National Insurance. | As a result, high earners will pay more National Insurance. |
| Overall - taking all the income tax and National Insurance changes into account - many people will find they are no better-off. | Overall - taking all the income tax and National Insurance changes into account - many people will find they are no better-off. |
| I am a pensioner, what is there for me? | I am a pensioner, what is there for me? |
| READ THE REPORT The Budget 2007 [1.76MB] Most computers will open this document automatically, but you may need Adobe Reader All Budget documents | READ THE REPORT The Budget 2007 [1.76MB] Most computers will open this document automatically, but you may need Adobe Reader All Budget documents |
| Many will be cheered by the news that income tax personal allowances will rise dramatically. | Many will be cheered by the news that income tax personal allowances will rise dramatically. |
| For pensioners under the age of 75 the tax free allowance will rise in stages from £7,280 to £9,770 in 2011. This may offset the extra cost due to the abolition of the 10% income tax rate. | |
| But because of complex rules where the amount you earn will affect your tax free allowance, pensioners earning more than £26,000 may find that they receive no benefit from the higher allowances announced by Gordon Brown. | But because of complex rules where the amount you earn will affect your tax free allowance, pensioners earning more than £26,000 may find that they receive no benefit from the higher allowances announced by Gordon Brown. |
| The Pension credit guarantee will rise to £130 by 2010. | The Pension credit guarantee will rise to £130 by 2010. |
| People who have lost their retirement savings when their company pension scheme went bust received a welcome boost. | People who have lost their retirement savings when their company pension scheme went bust received a welcome boost. |
| The chancellor pledged that the amount of money being made available to the Financial Assistance Scheme - which pays money to people who have lost their pensions - would quadruple from £2bn to £8bn. | The chancellor pledged that the amount of money being made available to the Financial Assistance Scheme - which pays money to people who have lost their pensions - would quadruple from £2bn to £8bn. |
| Recently, the government has faced a high-profile campaign to force it to compensate people who have lost their pensions. | Recently, the government has faced a high-profile campaign to force it to compensate people who have lost their pensions. |
| We drive a gas-guzzling people carrier, will the Budget mean extra expense? | We drive a gas-guzzling people carrier, will the Budget mean extra expense? |
| Yes it will. | Yes it will. |
| The Chancellor has upped Vehicle Excise Duty (VED) on the highest polluting vehicles, including many people carriers and 4x4s. | The Chancellor has upped Vehicle Excise Duty (VED) on the highest polluting vehicles, including many people carriers and 4x4s. |
| The annual cost of VED for the most polluting vehicles will rise from £210 to £300 this year and then £400 in 2008. | The annual cost of VED for the most polluting vehicles will rise from £210 to £300 this year and then £400 in 2008. |
| Further pain could be on the way. In the past two Budgets the chancellor has raised VED on the most-polluting cars by far more than inflation. | Further pain could be on the way. In the past two Budgets the chancellor has raised VED on the most-polluting cars by far more than inflation. |
| Now may be the time to switch to a less polluting car. | Now may be the time to switch to a less polluting car. |
| As part of the government's carrot and stick approach, vehicles with smaller engines in the lowest polluting categories will pay lower VED. | As part of the government's carrot and stick approach, vehicles with smaller engines in the lowest polluting categories will pay lower VED. |
| Vehicles in band B will see VED cut by 30%. | Vehicles in band B will see VED cut by 30%. |
| A 2p increase in petrol duty has been deferred until October. | A 2p increase in petrol duty has been deferred until October. |
| I am concerned about the environment, is anything new being done? | I am concerned about the environment, is anything new being done? |
| The environment is one of the hot political topics of the moment. | The environment is one of the hot political topics of the moment. |
| All three main political parties are keen to highlight their green credentials. | All three main political parties are keen to highlight their green credentials. |
| Recently, the Conservatives proposed that people who take more than their fair share of flights to pay more tax - in effect, proposing a "polluter pays" approach. Driving a "gas guzzler" will become more expensive | Recently, the Conservatives proposed that people who take more than their fair share of flights to pay more tax - in effect, proposing a "polluter pays" approach. Driving a "gas guzzler" will become more expensive |
| The chancellor has taken a different approach, trying to offer sweeteners for people to adopt a more green lifestyle. | The chancellor has taken a different approach, trying to offer sweeteners for people to adopt a more green lifestyle. |
| For example, extra grants will be available to pensioners installing insulation. | For example, extra grants will be available to pensioners installing insulation. |
| I am a saver, is there any reason for me to celebrate? | I am a saver, is there any reason for me to celebrate? |
| Yes the amount of money you can pay into a cash Individual Savings Account (ISA) will rise from £3,000 to £3,600. | Yes the amount of money you can pay into a cash Individual Savings Account (ISA) will rise from £3,000 to £3,600. |
| More than 16 million Britons have an ISA. | More than 16 million Britons have an ISA. |
| I am on a low income, what extra is on offer? | I am on a low income, what extra is on offer? |
| Tax credits are the main method that the chancellor wants to "make work pay". | Tax credits are the main method that the chancellor wants to "make work pay". |
| Working tax credit, claimed by 1.5 million Britons, will receive a £1bn boost. | Working tax credit, claimed by 1.5 million Britons, will receive a £1bn boost. |
| The chancellor said the average working tax credit claimant would be £7.10 per week better off as a result. | The chancellor said the average working tax credit claimant would be £7.10 per week better off as a result. |
| Lone parents will get a weekly bonus for their first year in work. | Lone parents will get a weekly bonus for their first year in work. |
| I have children. What extra help is available to me? | I have children. What extra help is available to me? |
| Child benefit will rise 15% by 2010. | Child benefit will rise 15% by 2010. |
| In the pre-Budget report, the chancellor announced additional child benefit that would be paid to mothers with new babies. | In the pre-Budget report, the chancellor announced additional child benefit that would be paid to mothers with new babies. |
| In April, benefit payments for the poorest children will rise to £64 a week. | In April, benefit payments for the poorest children will rise to £64 a week. |
| Investment in education has been marked out as a priority for a possible future Brown premiership. | Investment in education has been marked out as a priority for a possible future Brown premiership. |
| Gordon Brown wants education to be a priority | Gordon Brown wants education to be a priority |
| In addition, greater investment is being made in apprenticeship schemes. This could boost your children's prospects of finding employment when they leave school. | In addition, greater investment is being made in apprenticeship schemes. This could boost your children's prospects of finding employment when they leave school. |
| Is there anything else? | Is there anything else? |
| The Inheritance Tax ( IHT) threshold will rise to £350,00 by 2010. | The Inheritance Tax ( IHT) threshold will rise to £350,00 by 2010. |
| Previous Budgets had set in train an increase in the IHT threshold to £325,000 by 2009. | Previous Budgets had set in train an increase in the IHT threshold to £325,000 by 2009. |
| The duty on beer and wine is set to rise in line with inflation but duty on spirits is frozen again. | The duty on beer and wine is set to rise in line with inflation but duty on spirits is frozen again. |