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"Why have a Budget?" Tim Knox writes guest column (Reuters)

    Tim Knox, CPS Director, guest writes for Reuters on yesterdays Budget.

    "Next year, the British government will spend £680 billion – or just under £2 billion a day, every day of the year. Remember that when considering all the noise – in both Parliament and the media – about yesterday’s Budget.

    Take the five main areas of tax reform put forward yesterday:

    • The reduction in the top rate of income tax from 50p to 45p. Cost to Treasury:  £50 million
    • The increase in the personal allowance to £9,205 in 2013. Cost to Treasury: £3.32 billion
    • The freezing of the personal allowance for pensioners. Tax raised: £360 million
    • The further cut in Corporation Tax to 24p. Cost to Treasury: £730 million
    • The increase in Stamp Duty on properties over £2 million to 7%. Tax raised £180 million

    (Figures are for 2013/14. Source: Red Book. Table 2.1)

    So these main tax changes account for £4.5 billion – the equivalent of a couple of days spending."

    Click here to read the full article.

    Date added: Thursday 22nd March 2012