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Budget reaction: Pensioners and motorists hit out but businesses welcome changes
12:00pm Thursday 22nd March 2012 in News
PENSIONERS and motorists who are feeling the pinch have voiced disappointment at this year’s Budget.
A change to pensioners’ tax allow-ances will leave five million pensioners £260 a year worse off.
Age-related personal tax allowances will be frozen, meaning that around five million pensioner taxpayers will no longer get additional reductions in their tax over the coming years.
However, those on the top rate of tax will see their bills reduced from 50p to 45p.
Dot Gibson, general secretary of the National Pensioners’ Convention, said: ‘Many older people will feel they are being asked to forego their reduction in tax to help out the super rich. There’s no fairness in that.”
There was no announcement about a freezing or reduction of the amount of tax motorists pay for fuel, meaning that petrol is on course to rise to £1.45p a litre and diesel will rise to £1.50p a litre from August.
Chancellor George Osborne said public spending will be reduced by a figure in the ‘low billions’ to fund tax reductions.
Ian Girling, of local business support service WSX Enterprises, said the budget is ‘generally a move in the right direction’ for smaller businesses.
He added: “The good news is obviously the reduction in corporation tax for businesses, with an immediate cut of one per cent, meaning the rate will be 24 per cent as of next month.
“The government has also made a further commitment to reduce this to 22 per cent by 2014.
“This is significantly lower than our international competitors – giving UK businesses a real boost.
“We were pleased to see planned chan-ges for smaller businesses around accounting for tax purposes which offer some good news around regulation for smaller businesses – although much greater reform is required to really support business growth.
“The Government are also talking of enterprise loans for young people to start businesses, but we are disappointed there isn’t a great deal of support for new businesses – and crucially – little to encourage the banks to start lending – particularly to smaller businesses that make up most of Dorset.
“That and the issue of regulation for businesses still means there is some way to go if recovery is to really take place.”
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