Are you a winner or loser in the latest Budget?

by Sarah Ashcroft

Chancellor George Osborne last week delivered his latest Budget, and as usual it has created plenty of talking points that have been debated at length by all manner of organisations and individuals.

Whether people are looking to buy a house or a mere packet of cigarettes, the cost they face is determined to some extent by the Budget.

Here, with the help of the Money Advice Service's own guide, we take a look at some of the types of people who have come out of Mr Osborne's financial plan well, and others who might not have been so delighted with the contents of the famous red box.

The winners

1. Savers

The first group who will benefit from the 2014 Budget are savers, with the ISA allowance rising from £11,520 to £15,000 from July 1st. 

This will allow people to put more cash into their ISA without being taxed.

Mr Osborne also confirmed that the limits for Junior ISAs and Child Trust Funds will be increasing; further improving the potential for Britons to put money aside.

2. Employees

It's not only those with thousands of pounds ready to save who will be better off, as many of the country's workers will also be in a stronger position. 

Anyone in employment will find that the National Minimum Wage will rise by three per cent to £6.50 per hour from October, while the tax-free personal allowance is set to be hiked from £10,000 to £10,500, benefiting the average taxpayer by £100.

3. Drivers

While this is all good to know, what really makes a difference to plenty of people is how much they will be asked to pay for everyday purchases.

As such, the scrapping of the planned 2p rise in fuel duty scheduled for September will go down well with drivers, helping to make prices at the pump more affordable.

4. Bingo players

One particularly unusual and eye-catching cut in tax came in the form of the UK's bingo industry, which Mr Osborne confirmed will benefit from duty being cut. 

Therefore, anyone who loves nothing more than to play the game will find it costs them less.

5. Drinkers

Cider and spirit drinkers will welcome a freezing of duty, and beer lovers will find their pints are actually 1p cheaper from next month thanks to another tax cut.

6. Pensioners

The government is also keen to make things easier for pensioners, so it's no surprise that some restrictions on older people's ability to access their pension pot have been lifted.

There will no longer be a requirement to buy an annuity, and the taxable part of an individual's pot will be charged at the normal income tax rate.

7. House buyers

House building is a serious topic in the UK at the moment and the chancellor moved to extend the Help to Buy scheme in order to support those who are struggling to purchase their own place to live.

He also said that financial backing for more than 200,000 new homes will be forthcoming.

The losers


But it's not all good news, as smokers were given no leeway by Mr Osborne as he appeared for the famous speech.

A two per cent annual increase in duty on tobacco will continue to be imposed, making it more expensive to smoke than ever before.

Published on: March 27, 2014

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