The Liberal Democrats have ensured this is a budget for the millions not for the millionaires, a Budget for many not the few.
That’s why the biggest move in this Budget is a tax cut for ordinary workers, going further and faster towards the Liberal Democrat goal of making the first ten thousand pounds you earn tax-free.
We have cut the 50p rate to 45p, but Liberal Democrats have ensured that the richest will be hit with tax rises five times as large in exchange. Liberal Democrats in government have made sure this budget does what the Labour Party never did – getting the richest people in the country to pay their fair share.
This budget shows the Liberal Democrats delivering in government. Tax cuts for people who need them most and a Tycoon Tax to make sure the richest pay their fair share. All, while we continue to rescue the country from the economic mess that Labour left behind.
Stevenage and the East of England will benefit from the measures set out in the budget:
- taking 2,380 Stevenage people out of income tax by increasing the personal allowance by a further £1,100 in April 2013 and across the whole of The East of England 75,000 low paid workers will no longer pay income tax. In addition to this 38,300 Stevenage residents will receive an income tax cut with the raising of the personal allowance.
- a reduction in the main rate of corporation tax by an additional one per cent.
- the top up of the Growing Places Fund, which will give the Hertfordshire Local Enterprise Partnership an additional £5.2 million to help local businesses.
The East of England will also benefit from other specific measures announced in the Budget, including:
- a shortlist of options to improve road capacity on the A14 between Huntingdon and Cambridge; and
- from April, the current range of Right To Buy regional discount cash caps will be replaced by a single, higher discount cap of £75,000 worth more than double the current cap in the East of England
Budget at a Glance and what its means for Stevenage and The East of England
|Measure||Impact in the East of England|
|Personal AllowancesFrom April 2013, the income tax personal allowance will increase by £1,100 in cash terms to £9,205. The biggest cash increase EVER.||This change will lift an additional 75,000 people in the East of England out of income tax and benefit over 2.2 million individuals.|
|Child BenefitThe Government will raise the threshold for the withdrawal of child benefit to £50,000.||This decision will benefit 88,000 households in the East of England.|
Stamp Duty Land Tax
To ensure that purchasers of high value property pay their fair share of tax the Government is introducing a new 7 per cent rate of Stamp Duty Land tax (SDLT) on residential property over £2 million. The measure will take effect from 22 March 2012 and will effect approximately 3,000 transactions per year.
In 2010-11, 4 per cent of the property transactions over £2 million took place in the East of England.
|Video Games tax relief The Government will introduce corporation tax reliefs for the video games industry from 1 April 2013.||This will benefit the video games industry across the UK, including development hubs such as Cambridge.|
|Mobile Infrastructure FundGovernment will use its £150 million Mobile Infrastructure Project to deliver improved mobile phone coverage to 60,000 households nationally and along a number of busy A-roads with poor coverage.||In the East of England this includes the A143 between Great Yarmouth and Haverhill.|
|Growing Places FundBudget announces that the Government will increase the Growing Places Fund by £270 million to provide additional funding for the infrastructure needed to unlock developments that will lead to jobs and growth.||Local Enterprise Partnerships in the East of England will receive a further £16.4 million:- £5.2 million for Greater Cambridge & Greater Peterborough LEP
– £5.2 million for Hertfordshire LEP
– £5.9 million for New Anglia LEP
This takes the total Growing Places Fund allocation for the East of England up to over £49 million.
|Super-connected citiesThe Budget confirms that Government will provide an additional £50 million to fund a second wave of ten super-connected cities.||Eligibility criteria will be announced in due course. We expect that cities from across the UK – including the East of England – will be able to apply.|
|A14The Government has identified a shortlist of options to improve road capacity on the A14 between Huntingdon and Cambridge. These include widening some sections, rationalising access to the route, and improving the route of the southern bypass for Huntingdon. In developing a package to improve the transport corridor the Government has also shortlisted options to shift more freight from road to rail and enhancing local public transport. The preferred package will be finalised by July 2012.||Improved road performance and capacity on one of the country’s most congested roads which is a key transport route connecting the Haven ports to the Midlands and the North.|
|Right to BuyFrom 2 April the current range of Right to Buy regional discount cash caps will be replaced by a single, higher discount cap of £75,000.
The Government will use the receipts to pay down the outstanding housing debt on the units sold and replace, on a one to one basis, the additional properties sold with new affordable homes for rent.
|In the East of England, the current cash cap of £34,000 (except in Watford, where the maximum discount is £16,000) will be increased to £75,000. More eligible social housing tenants will get a higher discount when they apply to buy their own home.|
|Get Britain BuildingThe Government published the shortlist of sites to receive £420 million of funding through the Get Britain Building Fund on 19 March – supporting firms in need of development finance and delivering over 12,000 new homes. We are now going further, and will provide an additional £150 million over the next two years – delivering over 3,000 more homes that the country urgently needs.||Under the fund the Government will invest almost £40 million in the East of England, delivering nearly 1,200 homes. This will also support over 2,300 jobs in construction and related sectors locally.|
|PWLBBudget announces that, in 2012-13, principal LAs will be able to access PWLB borrowing at a reduced interest rate, in return for providing transparent and robust spending plans.||This means LAs in the East of England will be able to use public money to finance capital projects more cheaply.|