The Chancellor George Osborne has announced his budget and Sir Edward Leigh MP, the Conservative member of parliament for Gainsborough, has welcomed a number of the moves which will save money for Lincolnshire residents.
Earners will find the personal tax allowance will rise to £10,500 from April 2015, cutting taxes for 25m people and taking another 290,000 people out of paying income tax altogether.
Rises in the personal allowance since 2010 mean that by April next year a typical basic rate taxpayer will be paying £805 less in tax than they would have been, with 3.2m people taken out of income tax altogether.
Meanwhile, savers will benefit from merging the cash ISA and stocks and shares ISA into a single new ISA with an annual limit of £15,000.
Another benefit for savers is also that the starting rate of tax for savings income will be reduced to 0p and extended to the first £5,000 of savings income.
In the biggest reform of pensions taxation in a century, the Chancellor announced that no one would be forced to buy an annuity if they don’t want to and there will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum and drinkers will find savings as the tax on beer will be cut by a penny a pint, helping local pubs. Duties on Scotch whisky and other spirits will be frozen, as will duty on ordinary cider.
Sir Edward Leigh MP said: “This budget brings real results for people here in Lincolnshire.”
“Earners will find it easier to take home more money with the increase in the personal tax allowance.”
“Savers will find their hard-earned savings will be taxed less. Drinkers will find duty frozen or cut on their poison of choice.”
“There’s still more that can be done. Far too many middle-income earners have been pushed into paying a higher rate of tax, and overall the entire tax system could do with more simplification, especially for small businesses.”
“The Chancellor has made some difficult decisions, but he has delivered a budget which will benefit ordinary, working people, and that will go a long way towards putting our families and our country in finer fiscal shape.”
Coun Colin Davie, Executive Member for Economic Development, said: “There is a lot of good news for Lincolnshire businesses in the budget. Over the last few years we’ve been helping local firms find opportunities to export their products to global markets.”
“We do have some strong exporters, but there could be a lot more, and the finance announced should help boost our numbers.”