Video: Notts TV’s Sharon Walia talks pensions with regulars in Langtry’s pub in Nottingham
A pledge to tackle obesity, tax cuts for small businesses and pension changes – but no sign of devolution. We look at the key parts of the 2016 budget that will affect people in Nottinghamshire.
George Osborne delivered his eighth budget in the House of Commons this afternoon, shocking political commentators with the introduction of a new sugar tax for soft drinks companies.
There were also changes to the way in which people save for pensions and a cut in tax for small businesses.
Thousands of small to medium-sized firms in Notts could also now benefit from a relaxation in stamp duty, meaning some will pay less or nothing at all.
There was also a fuel tax freeze for the sixth year running, meaning businesses and consumers will continue to pay the same rate.
The budget is attractive on the surface, but when the dust settles, things look unclear.
Ian Baxter, Chairman of Baxter Freight in Lenton said: “Fuel costs cause an impact for our customers over the long term. It’s the right thing for the transport industry and consumers.
“We were bracing ourselves for a tough budget – he’s taken a gamble hoping that in the end it will come out good. The only thing that could go wrong is a Brexit – and I’m hoping that’s not the case.”
“Britain is now the most business friendly environment, and we must take advantage of the EU and not back out at the last moment.”
What are the Chancellor’s plans?
- Sugar tax to tackle child obesity in 2018
- Savers to receive £1 for every £4 in a new ‘lifetime ISA’
- Personal income tax threshold to increase from £10,600 to £11,500
- Beer, cider and spirits duty to be frozen
- Fuel duty will remain frozen for the sixth year
- Small businesses will see stamp duty reduced, 600,000 nationwide could pay nothing
But Mr Osborne also said that a further £3.5bn of public spending cuts would have to be found by 2020.
Labour leader Jeremy Corbyn said in his rebuttal of the speech: “People have been failed by the budget, austerity is a political choice and not an economic necessity”
Pete Murphy, a lecturer at Nottingham Business School said: “This was a political budget rather than an economic strategy. It’s key aim was to appeal to MPs who were worried about the EU, Tory MP’s concerned about leadership and the business community.
“The budget looks attractive on the surface, but when the dust settles, things start to look unclear.
“But everyone will find that help for small business owners is long overdue and most welcome.
“The sugar tax is overdue and has been called for by the health community for years. People are calling it shocking, but the only shock is that it was the Conservative government that introduced it and not the coalition.”
