It's Budget Day On Wessex FM!

george-osborne

Published at 9:48am 8th July 2015. (Updated at 6:46pm 8th July 2015)

George Osborne has delivered the first fully Conservative Budget since 1996

 

The Chancellor's set out a number of welfare cuts in the budget that will save 12 billion pounds.

Working age benefits - excluding maternity pay and disability benefits - are being frozen for four years and child tax credits are to be limited to 2 children, for those born after April 2017.

He's also slashed the income threshold at which families can receive in-work benefits by almost half.

George Osborne's scrapped the permanent "non-dom" status that allows people to avoid paying tax in the UK.

Student grants are going to be axed and replaced with loans from 2016.

But the Chancellor has produced a bit of a shock by announcing a new 9 pounds an hour living wage by 2020, which will be for every worker over 25 years of age.

THE KEY FACTS

He's confirmed 12 billion pounds of savings will be made from the welfare bill over the next parliament.

5 billion will be saved through a crackdown on tax evasion and avoidance.

He used the example of the crisis in Greece to show what can go wrong if a country isn't in control of its borrowing.

Fuel Duty to remain frozen this year

New apprenticeship levy for all large firms

Maintenance grants to be replaced with loans for new students from 2016-17

New compulsory National Living Wage for over-25s to start in April at £7.20/hr, rising to £9 by 2020

National Living Wage compulsory for working people aged 25 and over

Joint Security fund of £1.5bn to be created by end of Parliament

Higher rate tax threshold raised to £43,000 next year

Tax Free personal allowance raised to £11,000

Welfare Reforms to save £12bn by 2019-20

Rents in social housing sector reduced by 1% a year for next four years.

Tax Credit and Universal Credit limited to families with 2 children

Benefits cap reduced to £23,000 in London and £20,000 for rest of the country

Working age benefits to be frozen for four years

 

Richard Bugler, Partner at Albert Goodman Chartered Accountants, joined us in the studio to give his reaction to George Osborne's July Budget.

 Ian Girling, chief executive of Dorset Chamber of Commerce and Industry (DCCI), said: "The Chancellor's focus on economic growth, improved productivity and job creation is to be welcomed.
 
"The proposed cut in corporation tax to 18% and increase in National Insurance employment allowance will also offer encouragement to some Dorset businesses along with proposals to boost apprenticeships. However I would like to see the Chancellor do more to encourage all businesses to have a stronger focus on training.
 
"An increase in the annual investment allowance to £200,000 for business is welcome, while the 2% guarantee in defence spending is welcome news for local companies with MoD contracts.
 
"Some SMEs may have concerns about the new national living wage of 9% although this is staggered through until 2020 which may help ease the burden.
 
"It was disappointing not to see any mention of business rates but there is plenty to digest in this Budget and no doubt, as ever, the devil will be in the detail."