Chancellor George Osborne presented the budget for 2015 on 18th March 2015 at the House of Commons. This was the final budget for the current parliament. George Osborne stated, “Today I report on a Britain that is growing, creating jobs and paying its way. We took difficult decisions in the teeth of opposition, and today Britain is walking tall… We will use whatever resources we have to get the deficit down. This is a Budget that takes Britain on one big step on the road from austerity to prosperity.”
Osborne's budget plan is a bid to amend the economic state of the country, aiming to get many historic debts paid off. Further on, the pension lifetime allowance, which according to Osborne is “unsustainable” will be cut. However, the chancellor claims this cut will affect less than 4pc of people.
Savers will not have to pay tax on interest on the first £1,000, or £500 for high-rate taxpayers. In addition, there will be a new “Help to Buy ISA” scheme to help first time buyers to acquire a property. For every £200 saved, the government will give an extra £50. Plus, other ISAs will become more flexible, allowing savers to keep tax benefits whenever they withdraw or deposit money into the account.
Osborne has claimed that he would eventually want to raise tax free allowance to £12,500 and 40p rate to £50,000. So far, the personal tax free allowance has risen to £10,800 next year and will be £11,000 the year after. In addition to the further changes, the annual tax return will be abolished, with the details being automatically uploaded online.
There have been further changes announced, some promising and some questionable; however, the budget has not only been a worrisome subject for the general public. Many politicians have been vocal in stating their discontentment and opinions about the 2015 budget.
Labour MP, Sadiq Khan has express is views on the new budget. He states, “I sat in the House of Commons Chamber on Wednesday, listening to George Osborne’s budget with dismay. We continue to be told how as a country we’ve never had it so good – yet after five years of this government, that’s not how it seems to me... Here in Wandsworth we have seen our first food bank open, and then several more since. Wages have been frozen, and the cost of living has gone through the roof.” Khan further adds, “But none of this was mentioned in Mr Osborne’s budget. Neither was the NHS. St George’s A&E is in crisis, and our hospital is in desperate need of more nurses and doctors. But nothing was said about addressing the crisis in our NHS. I’m worried about what another five years of George Osborne and his party would mean for our community.”
Labour's Shadow Public Health Minister, MP Luciana Berger said in regards to the health budget cuts, “These figures are the latest in a long line of broken promises and false economies on mental health from this Tory-led Government. For five years Ministers have been promising that mental health would be treated with the same importance as physical health but these figures prove that they have broken that promise. Mental health budgets have been squeezed, spending on children’s mental health services is down by £50 million, and we’ve lost thousands of specialist nurses and hundreds of specialist doctors.”
MP Seema Malhotra expressed, “This is a budget that cannot be believed. Whilst George Osborne spent an hour telling people they have never had it so good, the truth is that working people across the country are £1,600 a year worse off after five years of the Tories. I am disappointed the Budget said made no mention of investment in the NHS. And the Tories today confirmed plans for extreme spending cuts in the three years after the election- which will put our NHS at risk.”
On the other hand, in regards to the long-term economical plan, the Director-General of the Confederation of British Industry (CBI), John Cridland said, “Stability and consistency are what businesses need to grow and prosper. This Budget sets the tone, providing a clear plan for fiscal health and growth.”
In additon, the Director-General of the British Chamber of Commerce (BCC), John Longworth expressed, “The Budget unveiled today recognises both short-term electoral horizons and long-term economic needs...Yet the Chancellor avoided the temptation to use newfound windfalls for gimmicks. His focus on fiscal responsibility will play well with business audiences.”
While some have been in favour of the new budgets, others have not been shy in stating their displeasure. Only time will tell whether these new plans will be beneficial or detrimental to the economic and social state of the UK.
