This is a radical, reforming Budget which helps Britain earn its way in the world. It is a Budget that rewards work. It unashamedly backs business and puts us on the side of those who aspire to do better for themselves and their families. It sticks to the plan to deal with Labour’s debts
This is a Budget with far reaching tax reform. It announces the largest ever increase in the personal tax allowance that will benefit 24 million ordinary families up and down the country. Most basic rate taxpayers will gain £220 every year. In total this Government will have taken two million low paid people out of tax altogether.
We are also reducing the top rate of income tax to 45p, so Britain no longer has the highest rate of income tax in the G20. Labour introduced 50p just months before leaving office. It undermines our competitiveness and new evidence, endorsed by the independent OBR, finds that it only raises a fraction of what was intended. Reducing the top rate to 45p has a direct cost of £100 million. Indeed HMRC calculate the indirect effect on consumption taxes may even cancel that out. However we are introducing new taxes on the richest in our society, including a cap on tax reliefs, which together raise £500 million. So as a result of this Budget the richest pay more.
To boost investment and jobs there is also an additional one per cent cut in corporation tax. This means by April 2014 we will have a 22 per cent corporation tax rate - the lowest rate in the G7, and a sign to the rest of the world that Britain is open for business.
This Budget reaffirms our unwavering commitment to deal with Britain’s debts. Under Labour this country borrowed itself into trouble, now we are going to earn our way out.
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