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How Does The Budget Affect Me In 2016?

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Budget 2016

Read all about it! The 2016 Budget has been announced

The Chancellor of the Exchequer has announced the budget plans for the UK in 2016. It does seem that the ‘Sugar Tax’ has been very much at the forefront of the coverage. It’s new and a little bit different so it’s understandable it’s caught everyone’s attention.

The real issue, though, is not how much a can of fizzy drink will cost, but how the budget will affect us. This can be on a class level or right down to the individual or family. The big question is ‘How does this year’s budget affect me?’

It’s sometimes hard to see the wood for the trees as the party in power are confident their changes are going to be for the best and the opposition knows they would have done it differently.

George Osborne states these are the improvements he has made.

  • Cutting taxes so working people can keep more of the money they earn From April next year the tax-free personal allowance will rise to £11,500, a tax cut for 31 million people that means a typical basic rate taxpayer will be paying over £1,000 less income tax then when we came into government. The higher rate threshold will also increase to £45,000, a tax cut of over £400.
  • Freezing fuel duty to support household budgets and small firms. We have frozen fuel duty for the sixth year in a row, a saving of £75 a year to the average driver and £270 a year to a small business with a van. We’re also freezing beer and cider duty to back British pubs.
  • Improving our schools so our children get the best start in life. We’re providing extra money so every school in England becomes an academy and we are going to put a new sugar levy on the soft drinks industry so they reduce the sugar content of their products to tackle childhood obesity. The money raised will be used to double sports funding in primary schools and fund longer school days in secondary schools that offer their pupils a wider range of activities, including extra sport.
  • Introducing a new Lifetime ISA to help the next generation to save. We know people like the simplicity of ISAs so we’re going to increase the ISA limit from just over £15,000 to £20,000 for everyone. For those under 40, many of whom haven’t had such a good deal from pensions, we’re going to introduce a completely new Lifetime ISA. You won’t have to choose between saving for your first home, or saving for your retirement – the government is going to give you money to do both. For every £4 saved, the Government will give you £1. So put in £4,000 each year and the government will give you £1,000 every year until you’re 50.
  • Cutting taxes for small businesses. 600,000 small businesses will now pay no business rates at all, an annual saving of up to almost £6,000, and a further 250,000 small businesses will get a tax cut on their business rates bill. We have also cut Capital Gains Tax to boost enterprise and cut Corporation Tax to support investment and job creation.

To see what the media are reporting on this year’s budget, look here. We have BBC News Coverage and Buzzfeed's report to compare.