Budget is positive for Swindon, say chartered accountants Banks BHG

Chancellor George Osborne’s last budget before the May General Election at first sight looks like good news for Swindon businesses and residents.

Included in the measures is the scrapping of Class 2 National Insurance for the self-employed. Businesses employing youth apprentices will now no longer pay National Insurance; an announcement to scrap NI for under 21s had previously been made.

“These measures appear to be good news for businesses, as does the planned review of the business rates system. But we would like to have seen the Chancellor announce what the Annual Investment Allowance will be beyond December. Currently, it is £250,000 but it could drop back. And we would like more detail about the changes to Entrepreneur Relief, and to the Film and Tax credit scheme.”

Banks BHG Director Richard Mathews said: "For individuals, the new personal savings allowance – tax being waived on the first £1,000 of interest on savings – was good news, as were the increases in the personal allowance and the threshold for higher rate tax. He said: “We also like the sound of the Help to Buy ISA for first-time buyers, but need a lot more detail on this.”

One of the measures known before today's speech was the plan to create a second-hand market for annuities. For those who have already committed their pension savings to an annuity that pays them an income for life will be able to sell the contract for a lump sum. The Budget document explains the Government expects the policy to bring in more tax, as income tax will fall on those cash windfalls at a higher rate than for regular annuity income.

The UK economy had the fastest annual growth among G7 economies in 2014, and the strongest annual growth since 2007. At the end of 2014, employment had reached its highest ever level, unemployment has been falling in every region across the UK, and inflation is at a record low. However, there are still risks and we believe there is more to do to support businesses and boost productivity.