Inside the Red Box: The 2014 Budget main point summary at a glance

George Osborne announced his budget plans with focus on boosting economic security and aspiration.

16:10 19 March 2014

George Osborne’s 2014 budget was focussed on strengthening the economic recovery with growth this year projected to be the strongest in any Western economy.

Based on the latest figures, unemployment rates dropped by 63,000 in three months to January. Meanwhile, business groups expect that UK economic output will exceed its pre-recssion peak in the second quarter of 2014.

Summing up his budget, Osbourne said that it would boost “makers, doers and savers”.

How does the Budget 2014 affect me? Let’s have a look at some of the main points:

PERSONAL TAX, PENSIONS and SAVINGS:

Personal allowance raised to £10,500 next year; average savings of £800

Higher rate threshold (40p income tax) rise from £41,450 to £41,865 next month and then by further 1 per cent to £42,285 next year.

Tax restrictions on pensioners’ access to pension pots removed

Scrapped: 10p starting rate of tax on savings income


LEISURE:

2% rise above inflation on tobacco duty

Alcohol duty escalator abolished

Beer duty cut by 1p per pint

Spirits and ordinary cider duty frozen

Bingo duty halved to 10%

Theatre productions to see 20% tax relief


TAX:

Planned rise in fuel duty in September scrapped

Inheritance tax scrapped for members of the emergency services

No VAT charged on fuel for air ambulances and rescue boats

Stamp duty on homes worth over £500k will rise by 15% if bought by a company for purposes of tax avoidance


ECONOMY and INVESTMENT:

GDP growth better than expected: 2.7% this year, 2.3% next, then 2.6%, 2.6% and 2.5% in the years following amount to £16 billion bigger than previous predictions

Deficit revised down to 6.6% this year

Debt revised down to 74.5% of GDP. Will peak next year but fall again the year after.

Borrowing to be £12 billion less than forecast

Support fund to build 200,000 homes

£140m found for flood defences

£200m found to fund pothole repair

Scheme to boost exports will see a double in finance to £3 billion


JOBS:

1.5 million more jobs over next five years

Earnings to grow faster than inflation


ENERGY:

£7 billion package to cut energy bills – in real terms saving families £15 a year