THE Chancellor of the Exchequer, George Osborne, yesterday delivered an election Budget that was both business friendly and designed to appeal to lowincome earners.

Mr Osborne said: “Our goal is for Britain to become the most prosperous major economy in the world, with that prosperity widely shared.”

He announced that economic growth was now expected to be 2.5 per cent in 2015 and that the unemployment rate would be 5.3 per cent.

The Tories have stuck rigidly to their political message of being superior economic managers ahead of the May 7 poll, focusing on continued austerity but with some softening around the edges.

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Mr Osborne said: “Britain is on the right track. We must not turn back.”

The UK deficit is expected to fall to 4 per cent in 2015-16, before reaching a surplus of 0.2 per cent in 2018-19.

The digital entrepreneur.

Oxford Mail:

OXFORD-based digital entrepreneur Dave Fletcher said the proposed rollout of superfast broadband across the UK would benefit all local businesses, and particularly those in rural areas that currently have slow internet connections.

The Government yesterday announced an “ambition” to bring broadband of at least 100 megabits per second to nearly all homes. It will spend up to £600m to clear new spectrum bands for further auction.

Mr Fletcher, the founder and managing director of White October and chairman of industry body Digital Oxford, said: “That will make a colossal difference to people business-wise.”

He said the speed of 100 megabits per second would mean “there’s not a lot you can’t do”.

This would especially benefit businesses with offices in different locations or counties that needed to be connected.

Mr Fletcher said the Government’s aim would also solve weak internet spots in rural Oxfordshire.

The vehicle hire firm operator.

Oxford Mail:

PERCY Patti, who runs Kidlington-based coach and car hire firm VentureOxford, hailed George Osborne’s decision to cancel September’s planned rise in fuel duty as “brilliant”.

Petrol and diesel costs her business £1,000 a week, so the extended freeze on fuel tax means huge savings.

She said: “It’s a relief to know what my costs are going to be.

“When oil prices were really high this time last year, it was a nightmare.

“We have repeat annual business, which is good but it also means you can’t just increase prices, you have to ride the storm.”

Ms Patti, whose clients include Oxfordshire County Council and Blenheim Palace, said lower petrol prices have allowed her to put up wages for staff, recruit another employee and invest in three new vehicles.

She added: “Since fuel prices have come down our business has grown.

“Fuel is key, because it affects families and businesses.”

The accountant.

Oxford Mail:

OXFORD accountant David Lushington thinks the increase in the personal allowance will benefit low-income earners but that the Budget did not contain any surprises.

The personal allowance, which was scheduled to rise to £10,600 from April, will now be £10,800 from next month, increasing to £11,000 in 2016-17. The change will affect 27m taxpayers.

Mr Lushington, the owner and managing director of TaxAssist, said: “It’s pretty good news when you do get an increase like that.”

The adjustment means an additional £80 per year in taxpayers’ pockets.

The government will also change the threshold for the 40 per cent income tax rate from £42,385 this year to £43,300 by 2017-18.

Mr Lushington also supported the decision to abolish tax on a person’s first £1,000 in savings for those earning up to £42,700 a year, starting April 2016.

However, he did not think the Budget contained anything “exciting”. “You wouldn’t jump up and down as an ordinary Joe taxpayer. I didn’t see anything radical, which is what you would expect in an election year.”

The dairy farmer.

Oxford Mail:

OXFORDSHIRE dairy farmer David Christensen welcomed the Government’s decision to extend the period that farmers can average their profits for income tax from two to five years.

Mr Christensen, who has 600 dairy cows at Kingston Hill Farm, in Kingston Bagpuize, said: “Extending over that period is good, particularly as we are learning to cope with more volatile trading conditions. It’s a constructive move for farmers.”

He said dairy farmers had been buffeted by a plunge in the price paid for milk, from a high of 35 pence per litre last year to about 24 pence now.

This was coupled with “increased cost volatility”.

“I think there are swings and roundabouts in farming, more so than ever,” he said.

The extension of the period of averaging profits helped smooth out the cyclical nature of the farming industry, which is also subject to weather and high capital expenditure.

“You don’t pay tax until the following year, so by that time you may not have the cash.”

The pensions expert.

Oxford Mail:

EXPERT Ed Gibson is not convinced about Budget changes that allow pensioners to sell the annual income they receive from their pension from April 2016.

Mr Gibson, head of financial services for Banbury Road-based accountancy firm Shaw Gibbs, said: “This makes a lovely headline for pensioners who, as a group, are more likely to turn out to vote.

“It’s mainly going to appeal to those who bought annuities from their pension provider and got a really bad deal but because they got a bad deal, what they have isn’t worth that much.”

Mr Gibson believes freeing up more cash out of pensions could have a knock-on affect on the housing market.

He added: “A surge of money coming out of pensions and going into property might push prices even further out of reach for others.”

The pensioner.

Oxford Mail:

PENSIONER George Roberts welcomed plans to free retirees from annuity contracts.

The retired bricklayer from Eynsham said he decided not to buy into the scheme, which pays out a fixed sum of cash each year, but said pensioners should be allowed to sell their existing contracts from April next year without paying at least 55 per cent tax on it.

Mr Roberts, 71, added: “People should do what they want to with their money.”

But Mr Roberts, who cares for his wife of 41 years and Alzheimer’s sufferer Maureen, said more support should be given to pensioners saving their money.

He added: “At the moment I have savings and I have ISAs but with the interest rates so low, we are getting nothing.”

And Mr Roberts said he has never been able to afford a car but would have been encouraged to buy one if fuel duty freezes were in place earlier.

He added: “I think it will definitely help.

“People are struggling and I think every penny helps at this moment in time.”

The first-time buyer.

Oxford Mail:

FIRST-TIME buyer Katie Walton said the Help to Buy ISA scheme would have stopped her being priced out of a competitive housing market.

She bought her first home in Greater Leys last year with boyfriend Craig Harrison, 27, but said the pair struggled to find a home after rising house prices and bidding wars.

But she said the new Help to Buy ISAs, which will see the Government put in an extra £50 for every £200 people save, would have been welcome. Miss Walton, 26, a Helen and Douglas House fundraiser, said: “That would have helped massively. With that, we may have been able to have more options.”

And Miss Walton, who drives a Volkswagen Polo, said she was pleased to hear fuel duty increases, which were planned for this September, had been put on hold.

She added: “It will definitely help me. I put some fuel in my car and it was a bit more than I expected.

“The price of it is quite ridiculous.”

The property developer.

Oxford Mail:

THE new Help To Buy ISA saving plan will help firsttime buyers afford a home and sets a good example, according to a leading property developer.

Dorchester Living chief executive Paul Silver, whose firm are behind the Heyford Park housing development in Bicester, said: “It’s very helpful because it assists people to get a deposit and makes sure they are not too stretched.”

The new scheme, exclusive to first-time buyers and available from Autumn this year, says that for every £200 saved in the Help To Buy ISA, the Government will contribute £50, up to a maximum of £3,000.

So, for someone who saves £12,000, it will be boosted to £15,000.

Mr Silver added: “The idea that you get rewarded if you save is a really good thing. It could get someone to the point of being able to buy a year or so earlier and it’s good for the housing market.”

The pub landlord.

Oxford Mail:

PUB landlord Dan Smaje is celebrating after the Chancellor announced he is taking a penny off the price of a pint.

Mr Smaje, who with wife Carole runs The White Hart in Headington, said: “We are very pleased.

Pubs are a big employer, especially of young people and this will create jobs across the industry.”

Mr Smaje, a tenant of Everards Brewery in Leicester, employs 15 staff at his pub in St Andrew’s Road. He added: “The biggest thing is that they are acknowledging that we have had a hard time of it and thousands of pubs are closing. It’s nice George Osborne values the industry, which has taken a battering.”

The Chancellor is also cutting duty on cider, Scotch whisky and other spirits by two per cent. Mr Smaje added: “The brewery says it will pass on the cut to us, so hopefully, we will be able to pass it on to customers.”

The chamber of commerce.

Oxford Mail:

THE Oxfordshire business community supported the Government’s range of business-friendly initiatives.

These included reducing the corporate tax rate to 20 per cent from next year and abolishing annual tax returns.

Oxfordshire Chamber of Commerce president Peter Smith said: “Lower business taxes, allowances for investment, and targeted support for sectors, regions and small companies all contribute to confidence, investment and job creation.

“The announcement that Class 2 National Insurance Contributions are to be abolished for the selfemployed is important for many of our members.”

Employers also will no longer have to pay NICs for workers aged under 21 and apprentices.

Mr Smith added: “Yet the Chancellor avoided the temptation to use newfound windfalls for gimmicks. His focus on fiscal responsibility will play well with business audiences.”

Mr Osborne said annual tax returns would be abolished from next year, which would affect the 12m individuals and small businesses that previously had to complete selfassessment tax returns annually.

Many of these taxpayers will now have their income information automatically uploaded to new digital tax accounts.

Support for churches.

Oxford Mail:

OUTGOING Conservative MP for North Oxfordshire, Sir Tony Baldry praised the Government for committing an additional £40m for roof repairs for the Church of England.

Sir Tony, who speaks for the Church of England in the House of Commons, said: “I am delighted the Chancellor’s been able to make available a further £40m to help parish churches up and down England complete essential repairs to their church roofs and to continue to serve their communities.”

He added: “This additional money will make sure that for more villages and communities their parish church can be a blessing and not a burden”.

The Chancellor allocated £15m for the Church Roof Fund in the Autumn Statement to support church roof appeals that he said had been heavily oversubscribed.

The budget announcement more than trebles the original amount.

Sir Tony is stepping down as the representative for North Oxfordshire at the May 7 election after holding the seat for three decades.

The family.

Oxford Mail:

MOTHER-of-two Claire Haynes, left, said there needs to be more support for families buying houses for the first time.

The housewife, 33, said she will still be unable to save for a deposit on a home, despite the new Help to Buy ISAs, which will see the Government put in an extra £50 for every £200 people save in the specialist accounts.

Cowley council tenant Mrs Haynes said: “I just can’t afford it.

It’s just too expensive. We can just make do with what we get. The household stuff and the my kids stuff is all about we can budget for.”

Mrs Haynes said her family struggled with just husband Darren’s wages. He works as a McDonald’s crew trainer.

She added wages need to rise to help first-time buyers.

And Mrs Haynes said although she rarely went to the pub, she thought a penny of the price of a pint was a good idea.

She added: “It will be good for the pubs because more pubs are closing down. It probably will make a difference. It’s only to entice people back into the pubs.”