Budget To Recompense 'Workers, Savers And Pensioners'

George Osborne has delivered his fifth budget trying to repay the public for the last years austerity with recompenses for "workers, savers and pensioners."

The House of Commons heard from the Chancellor that the coming years Budget message was: "You have earned it, you have saved it and this government is on your side."

The 55 minute•long Budget speech is said to be oriented to boost the income of pensioners and savers most hit by low interest rates, with the chancellor saying he would make tax•free ISA's more "generous" and introduce a million new "pensioner bonds".

The surprise announcement came at the end when the Chancellor announced that cash shares and ISA's were to be merged into a single bew "super ISA" with an annual tax•free saving limit of £15.000 from 1 July, while the limit for Junior ISA's will be raised to £4.000. The personal allowance limit will also be increase to £10.500.

Other measures announced included:

• A new £1 coin to combat counterfeiting

• Duty on bingo halls would be cut from 20% to 10%

• Scrapping on the duty escalator on wine and spirits, a freeze on duty in Scottish whisky and West Country ordinary cider, 1p off beer duty

• Tobacco duty to rise by 2% above inflation

• A system to increase exports doubling the amount of finance available to £3bn

• An extra £140m for repairs and maintenance to flood defences and £200m for potholes

• £2.000 tax-free childcare boost

• Scrapping VAT on air ambulance services and inshore rescue boats

• Scrapping inheritance tax for members of the emergency services who "give their lives protecting us.

• A five-year cap on structural welfare spending from 2015, starting at £119bn and rising in line with inflation and excluding pensions and Job Seekers Allowance

• Reform of air passenger duty so all long haul flights carry the same tax rate as currently charged for US flights

• A new "garden city" at Ebbsfleet, Kent, in addition to plans for 200,000 new homes

• Stamp duty on homes worth more £500,000 to rise to 15% for those bought by companies, as part of tax avoidance measures

• A £7bn package to cut manufacturers' energy bills and a freeze on the "carbon floor", knocking £15 off domestic energy bills

Mr Osborne also said: "Britain should always be proud of having a welfare system that helps those most in need. But never again should we allow its costs to spiral out of control and its incentives to become so distorted that it pays not to work."

(CVS/MH)