Insights
Budget 2016 – reaction
Chancellor George Osborne delivered his Budget statement on 16 March 2016.
Here is a round-up of the reaction from industry bodies.
British Chambers of Commerce (BCC)
Dr Adam Marshall of BCC was positive with regards to the commitments on infrastructure but wanted further reassurance on the process:
“The chancellor must ensure that they move from the drawing board to speedy construction on the ground. In a softening economy, the combination of sustained infrastructure investment and lower business taxes is important to maintaining the confidence of firms across the country.”
Association of British Insurers (ABI)
Huw Evans, director general of ABI welcomed the new Lifetime ISA, suggesting that for most people’s retirement outcomes, employer contributions paid into a workplace pension will be critical.
He said:
"The test for success for the lifetime ISA will be whether it increases overall retirement savings and does not undermine the auto-enrolment programme; this must not be a backdoor to pension ISA.”
Institution of Directors (IoD)
Simon Walker, director general of IoD was pleased with the new measures to help small and medium-sized business.
“Business leaders and workers alike will be pleased with increases to the income tax personal allowance and the higher rate thresholds next year, while the introduction of a lifetime ISA will be a big boost for young people who have been put off by the inflexibility of pensions.”
Federation of Small Businesses (FSB)
Mike Cherry, policy director at FSB welcomed the freezing of fuel duty saying that it “will be universally welcomed by small business right across the country.”
Mr Cherry was also positive on the government’s backing of devolution powers and infrastructure:
“Altogether, these measures should help to drive productivity and boost small business confidence levels, which have faltered recently in the face of a number of domestic policy and global economic challenges.”
Read our new stories in more detail in our full Budget report, as well as our overview of the measures relating to businesses and personal announcements.
Budget 2016 – other announcements
Chancellor George Osborne delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.
Here’s our summary of some of the highlights from his speech:
- Capital gains tax will reduce from 28% to 20% from April 2016. The rate for basic rate taxpayers will fall from 18% to 10%.
- Insurance premium tax will increase by half a percentage point.
- There will be investment in rail and road projects across the country.
- Stamp duty rates on additional properties which come into effect next month will also apply to large investors.
You can read about the measures in more details in our full Budget report, as well as our review of the measures relating to businesses and personal finance.
Budget 2016 – business announcements
The Chancellor George Osborne delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.
This is a summary of the main announcements affecting businesses:
Corporation tax
The rate of corporation tax will be reduced to 17% by April 2020.
Digital tax-free allowance
From April 2017, there will be 2 new £1,000 tax-free allowances. The first will for selling goods or providing services online and the other for property income.
Business rates
From next April, the threshold for small business rate relief will increase from £6,000 to £15,000. The higher rate threshold will rise from £18,000 to £51,000.
Stamp duty
There will be a nil-rate band of stamp duty on purchases of commercial properties up to £150,000. There will be a 2% rate on the next £100,000 and a 5% top rate on purchases above £250,000.
Self employed
In 2018, class 2 national insurance contributions will be abolished for the self-employed.
You can read about these measures in more detail in our full Budget report, as well as our overview of the measures relating to personal finance and other announcements.
Budget 2016 – personal announcements
The Chancellor George Osborne has delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.
Here’s our summary of the main announcements affecting personal finance:
Personal allowance
The tax-free personal allowance will increase to £11,500 from April 2017. The threshold at which people pay 40% tax will rise to £45,000.
Help to Save Scheme
A new savings scheme for lower-paid workers will be introduced, worth up to £1,200 over 4 years.
Excise duties
- Fuel duty will be frozen for the 6th year in a row.
- Duty rates on beer and cider will be frozen this year.
- Excise duties on tobacco are set rise by inflation.
Lifetime ISA allowance
A lifetime ISA will be introduced to save for long-term retirement or to buy your first home. Adults under 40 will be able to save £4,000 each year with savers receiving a 25% bonus from the government.
The total ISA limit saved each year will also increase from £15,240 to £20,000 from April 2017.
You can read about these measures in more detail in our full Budget report, as well as our overview of the measures relating to businesses and other announcements.
