News

Damian Collins, Conservative Parliamentary Candidate for Folkestone and Hythe has slammed Alistair Darling's budget.

He said: "Labour today delivered their last budget before the general election, which offered just more of the same debt, taxes, and waste that have got the economy into the terrible mess it’s in.

"But the budget also confirms that a new tax blow for local tourism businesses will come into force on 5th April this year.

"People who own holiday lets will see the tax on their profits nearly double and will no longer be able to claim investments in their businesses, like new furnishings and fittings, against their tax bill. This means local businesses who offer self catering holiday accommodation could be particularly badly hit, and will lead to higher prices, putting off visitors.

"The Conservatives have promised to scrap this tax increase on tourism. We will also cut corporation tax rates for all businesses, and abolish taxes on the first ten jobs created by new businesses. This will particularly help independent businesses employing local people.

"Kent businesses like the Biddenden cider makers will have also been disappointed to hear about the proposed 10% increase in tax on cider.

"Overall, there was more bad news for the economy, with the Treasury cutting its forecast for economic growth next year.

"We desperately need a new government with a new approach to strengthen and support local business and create jobs.”"

The Labour government are preparing for the coming election with a budget promising a £2.5 billion package to boost growth, higher taxes for the well-off and lower borrowing than predicted.

There were never going to be any big giveaways but Chancellor Alistair Darling still managed to cut house stamp duty for first-time buyers at little overall cost to the exchequer.

Summary of the Key Measures in today's budget

Fuel Prices

April fuel price increases to be staged. Fuel duty will rise by a penny in April, followed by a further 1p rise in October and the remainder in January.

Stamp duty

Stamp duty threshold for first-time buyers doubled to £250,000 from midnight, for this year and next.

Stamp duty increased to 5% for properties over £1m from April.

Children

Parents of one- and two-year-old children will be helped by increasing by £4 a week money paid through Child Tax Credit from 2012.

Pensioners

The pensioners' higher Winter Fuel Payment of £250, and £400 for the over-80s, will be guaranteed for another year.

Alcohol & Tobacco

Duty on cider will increase by 10% above inflation from midnight on Sunday.

Duty on beer, wine and spirits will increase as planned from midnight on Sunday. Alcohol duties will also increase by 2% above inflation for two further years from 2013.

Tobacco duty to rise from today by 1% above inflation and then increase by 2% in real terms each year until 2014.

Taxes

Inheritance tax threshold to be frozen for a further four years

Planned 1p increase in NI contributions to be waived for those earning under £20,000.

Those earning over £100,000 a year - the top 2% - will have value of their personal allowances gradually removed.

Tax relief on pensions will be restricted from next year, but only for those with incomes above £130,000 a year.

Confirmation of a 50% rate of income tax from April for those earning over £150,000.

Business

Annual investment allowance doubled to £100,000.

:Business rates cut for one year from October, bringing tax reduction for over 500,000 small businesses.

Entrepreneurs' relief for Capital Gains Tax will be doubled to £2m on which the lower rate of 10% will be taxed.

Mortgage support

The Support for Mortgage Interest scheme will continue at the higher rate for another six months.

Savings

From next month, annual ISA limit will rise from £7,200 to £10,200 and ISA limits will increase annually in line with inflation.

Young workers

No-one under 24 will need to be unemployed for longer than six months without being offered jobs or training. Offer extended to March 2012.

Older workers

Tax credit support for older workers to be extended. To make it easier for those over 60 to receive working tax credit, the Government will reduce the minimum hours they need to work to be eligible.

Banking services

A guarantee that everyone in Britain can have access to a basic bank account.

Investment

Help to be offered to the computer games sector similar to the aid given to the British film industry.

The Government will set up a £35 million University Enterprise Capital Fund to support university innovation and spin-out companies.

To boost a low-carbon economy, the Government will set up a new Green
Investment Bank, controlling £2 billion of equity.

Motor industry supported to develop electric cars.

The Chancellor said he would provide £100m to pay for vital repairs to local roads throughout the country following the recent bad weather and £285m to pay for improvements on motorways.

Growth Package

A £2.5bn one-off growth package to help small business, promote innovation, invest in national infrastructure and key skills. Paid for by switching spending from within existing allocations and the extra proceeds from the tax on bank bonuses.

© Hawkinge Gazette and Channel Coast News 2010