(MENAFN- ProactiveInvestors) George Osborne used his final budget before the General Election to make a clear play for the votes of savers pensioners and home buyers.
Stating boldly that Britain was walking tall again the Chancellor announced a raft of personal tax changes and incentives for business.
The economy is set to grow this year by 2.5% while investors looking for growth should look to the north as he said it grew faster than the south in 2014.
Borrowing is set to fall in each of the next four years and show a £12.8bn surplus by end 2017-8 with a further £30bn of public sector cuts to be announced in the next Parliament.
Labour leader Ed Miliband immediately decried the speech as containing nothing for the NHS or families that have had incomes squeezed under five years of austerity.
But this was an assured speech from the Chancellor who said the “sun was starting to shine on the UK economy”.
First time home buyers will now be able to take out a “Help-to-buy ISA” that will see the government add £50 to every £200 they invest for a deposit.
Announcing the initiative Osborne said: “We’re going to take two of our most successful policies and combine them to create a brand new Help to Buy ISA.”
The existing cash ISA also gets a tweak with investors now able to take money out and put it back during a tax year in a new ‘flexible’ ISA.
Other changes such as cash for annuities were cautiously welcomed.
“Giving savers greater freedom over their pensions including creating a secondary annuities market boosts choice but after a period of flux what's needed now is breathing space for the industry and consumers to get to grips with all the changes” said John Cridland CBI Director-General.
Lower rate income tax thresholds also rose to £10800 in 2015-6 and £11000 the following year while a personal savings allowance of £1000 will come in next year. The annual tax return is also being scrapped.
Elsewhere it was bad news for the banks as the Chancellor announced an increase on the rate of the bank levy to 0.21% while payment protection insurance (PPI) compensation will no longer be tax deductible.
This initiative would provide an additional £900mln a year.
Lloyds Bank () fell after the Chancellor announced the Treasury is to sell £9bn of shares in the bank this year.
On the business front after extensive industry pleading the Chancellor also announced he is to support the UK oil and gas industry through £1.3bn of tax cuts.
Petroleum Revenue Tax falls to 35% from 50% while supplementary charges are reduced by 10 percentage points to 20%.
Overall the tax burden on older fields drops to around 64% from 83% with the payback an estimated 15% in production from the North Sea by the end of the decade.
To keep the drinkers happy beer duty was lowered by 1p and cider whisky and other spirits duty by 2p.
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