How will the 2013 Budget affect you?

by Sarah Ashcroft

The announcement of a new Budget is always an important moment in the UK's economic calendar, with George Osborne yesterday (March 20th) once again stepping up in the House of Commons to deliver his verdict on the country's financial state.

Perhaps the biggest question on most people's lips now is how will the Budget affect them over the coming months and years. Here's a quick outline of how it may affect you:

1. Drivers

Millions of drivers in the UK will have been boosted by the news that the hike in fuel duty set at 3p has now been cancelled. This should help to keep a lid on prices at petrol station forecourts up and down the country.

2. Small business owners

They have been aided by the announcement of a £2,000 threshold for National Insurance contributions. It means small companies will not have to pay any sum under this amount, with many believing this is a bold move by the Chancellor, but one that is of huge benefit to entrepreneurs and employers.

Indeed, the Federation of Small Businesses immediately reacted to this piece of news by suggesting it should give certain firms the confidence to create thousands of new jobs. And in Britain's current economic state, that could be considered one of the most important developments of all.

3. Property buyers

Mr Osborne went on to reveal that the Help to Buy scheme is being rolled out and will do more than ever to help get people on the property ladder. His plans include 15,000 new homes being constructed, while favourable terms on loans and greater access to mortgages should also help to drive the first-time buyer market.

This could even prove to be good news for landlords in the long run, as they may find it easier to acquire properties to rent out.

4. Parents

Changes have also been made to the childcare voucher scheme. The subsidy available to parents is being increased, making it easier for more people to take advantage of it and find places that will look after their children during working hours. This should help many to return to employment, hopefully on a flexible basis.

5. Low-income earners

Workers on relatively low wages will be pleased to learn that the income tax threshold is being raised to £10,000. This means that by April 2014 all employees in the UK will not pay tax on the first £10,000 they earn each year, which should leave many better off.

6. Drinkers

Some people will have noticed the headline-grabbing changes to the price of beer too, with the Chancellor confirming that he is to reduce the price of a pint by 1p. While this may not be a measure that will revive the British economy, it's a welcome plus for drinkers.

Difficult times are still ahead for the UK, with Mr Osborne forced to halve his December prediction of 1.2 per cent growth in 2013 to 0.6 per cent in his Budget speech. But his latest moves might just help to create a brighter future for Britons in 2013 and beyond.

For instant answers, advice and tips on all your tax questions, read our expert guide Tax Answers at a Glance. Our book is updated each year in line with the Budget and is packed full of tax-saving tips and information on all you need to know about paying tax.

More information

  • Budget 2013: Tax rates and allowances at a glance

Published on: March 21, 2013

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