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Steven Coles: Steven summarises the budget as follows: The spirit of George Osborne’s 2012 budget could be summed up using his own statement - "This country borrowed its way into trouble. Now we're going to earn our way out." The main changes are summarised as follows: Personal taxes • Personal tax allowance – the threshold at which workers start paying income tax – will rise to £9,205 in April 2013, up £1,100 from £8,105 n April 2012. • Top 50p tax rate will be cut to 45p from April 2013. • Clampdown on tax avoidance and evasion. • A new 7% stamp duty tax on properties over £2m. Business taxes • Corporation tax will be cut to 24% in April, having already been cut to 26% from 28%. • Corporation tax will be 22% by 2014. This is the "biggest sustained reduction in business tax rates for a generation". • Above-the-line R&D tax credit from next year, as demanded by business groups. Child benefit • Child benefit to be partly removed from households where at least one person earns over £50,000 – softened from previous plans. Pensions • Plans to save £5bn by freezing age-related allowances for half Britain's pensioners • State pension age to be automatically reviewed to ensure it keeps up with growing longevity. • Simplification of tax system for pensioners. • Single-tier state pension to be introduced – estimated to be £140. Business • Enterprise finance guarantee to be expanded. • Wants to double UK exports to £1 trillion this decade. • Michael Heseltine to conduct review on how government can work better with private sector economic development Cigarettes, alcohol and gambling • Plan to tax online gambling based on location of the gambler, not the company. • Duty on all tobacco products will rise by 5% above inflation, with 37p on a packet of cigarettes from 6pm. • No changes to duty rates set out by previous government. That means beer duty rises by 2% plus inflation, adding around 10p to the cost of a pint. Fuel and vehicles • No changes to fuel duty plans already set out. • Vehicle excise duty to rise by inflation, but frozen for road hauliers. Energy • Package of tax changes to be introduced to ensure make the most from oil and gas extraction.
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