24 March 2011
British Budget 2011/12
Yesterday British Chancellor George Osbourne presented his budget to the UK Parliament.
The token gesture to business was a 2p reduction in corporate rate tax.
The controversial air tax on passengers will be frozen but is still very high at GBP93 and GBP186 for business class.
Personal allowances were raised so a person can now earn GBP 7475 free from tax and then the next GBP 35000 will be at 20% tax. From annual earnings of GBP 42475 people will pay 40% tax on all earnings over this amount. The 50% tax rate applies from earning GBP 150,000 plus.
I think many people will be looking forward to retirement after he announced that a flat rate pension will be introduced of GBP 140 per week. However, people will not be retiring until they are into their 70's.
During 2011/12 the British government will spend GBP 710 billion. Lets hope it gets spent wisely.