THE budget 2012 has been delivered by Chancellor George Osborne – so what’s in it for Swindon?

Yesterday he outlined plans to kick-start the economy through cutting corporation tax by an additional one per cent, relaxing Sunday trading during the London Olympics and providing funds to help new businesses. At face value, the moves may give the town a welcome boost after a choppy 12 months.

But pensioners reacted with dismay at plans to freeze their income tax allowances at the £10,500 level – which campaigners said will leave many up to £259 a year worse off.

The town’s pub trade also had little to cheer about after landlords raised warnings this week about hikes in beer duty.

High earners will be affected by the 50p top rate of tax being reduced to 45p in the pound from April next year for those earning above £150,000. The personal allowance threshold for income tax was raised to £9,205, also from April 2013. Child benefit will be phased out when one member of the household earns more than £50,000 and scrapped altogether for those earning more than £60,000.

The Accountant

Plans to simplify the taxation system and cut corporation tax should help smaller firms. But no mention was made of any changes to the small business rate.

Mandy Gibson, of Banks Chartered Accountants in Old Town, said: “The increase in personal allowance, moving towards £10,000, and softening to the plans to cut child benefit for high earners is good news for people in Swindon.

“But while personal allowance has increased, the threshold at which people start paying the higher 40 per cent rate has gone down, so more people will be in the higher tax bracket.

“And the Chancellor’s plan to have a single-tier pension and remove the earnings-related pension was a hidden sting.

“He has kept his plans for fuel duty in place, but made no cuts. I felt the Chancellor was lacking in detail on some of his measures.

“He talked about extending enterprise zones, and extending tax credits for research and development and doubling enterprise credit. He also talked about investment in technology, which I hope will have a beneficial effect on Swindon as we’re at the centre of a technology-rich region. but we need to see some of the detail in the Finance Act.”

The Pensioner

People turning 65 will no longer qualify for the higher tax rate of £10,500 a year.

From next year they will only qualify for a standard income tax allowance which was raised to £9,205.

Existing pensioners will have their tax allowance frozen at the £10,500 level, which age campaigners say is effectively a tax rise.

Mary Ratcliffe, 87, who ran an acupuncture clinic before retiring in Old Town, said: “The budget will benefit big businesses by reducing the tax they pay, while pensioners will pay even more.

“I already live very frugally, yet the extra we will pay on £104 a week is a drop in the ocean for a Government making savings of £10m from welfare cuts.

“It’s quite staggering. There’s no point producing a pill enabling everyone to live to 100 unless you can ensure a good quality of life.

“We are already struggling to maintain our dignity. This will only increase the gap between rich and the poor.”

The Landlord

George Osborne did not raise beer duty, saying he had no plans to change the decision announced by the previous Government.

His predecessor Alistair Darling introduced a “beer duty escalator”– meaning alcohol duty will rise two per cent above inflation every year until 2015.

Andy Marcer, the landlord of the Beehive pub in Old Town, said: “Effectively beer duty has gone up by five or 10p as the previous Government had announced an escalator. I suppose it’s good they have not put any extra, extra on it.

“The big boys in the industry will be able to sit this out but a lot of smaller pubs will be forced to put the shutters up.

“We will absorb this rise and not pass it on to customers.”

The Business Tzar

Plans were announced to cut red tape and provide cash incentives for new businesses. Trading rules will be relaxed on eight Sundays during the London Olympics.

Gary Mealing, the president of the Swindon Chamber of Commerce, said: “Businesses are a driver for the whole economy and anything that supports them and stimulates growth is to be welcomed.

“Cutting red tape will also help businesses, but that has been promised before.

“As far as relaxing Sunday trading laws go, we have 7,000-odd registered business in Swindon who could benefit from an extra day.

“But we will have to see if the Government can deliver on these promises.”

The Shopkeeper

Duty on tobacco rose by five per cent above inflation from last night, putting a packet of cigarettes up by 37p.

The Chancellor said this was to stop people smoking.

Osman Khan, the owner of Wyvern News in Theatre Square, said: “People will buy cigarettes whatever the price.

“They would if the price went up to £10 a pack. The Government knows this. If cigarettes are so unhealthy they should ban them altogether but then they would lose out on the 80 per cent profit margins and their finances would be crippled.

“I would rather not sell cigarettes as we make very little money from them as it is.

“The main reason to sell them is to get people in the shop.”

From Twitter

  • Anne Snelgrove: Well Swindon, your Tory MPs are giving 14,000 millionaires £40,000 tax cut but local families will be up to £570 worse off from next month
  • Coun Rod Bluh: The 50p issue is about what’s good for the economy/jobs not spiteful Labour class warfare!