Member Article

Budget 2015: George Osborne to announce pre-election Budget

George Osborne will announce the 2015 pre-election Budget at lunch time today.

The Chancellor has said that there will be “no gimmicks or giveaways” within his speech.

It has been suggested that the UK will have its finances bolstered by £6bn thanks to low inflation.

To support lower earning households it is expected that it will be announced that the amount people can earn before being taxed will be increased to £11k with both coalition parties promising to raise it further to £12.5k in the long run.

Mr Osborne is also expected to announce the move away from paper tax returns, which will affect more than 12 million people, with the introduction of digital tax accounts that can be accessed from smartphones, computers or iPads.

Following a series of pension reforms introduced by the government Mr Osborne has promised to change pension rules from April 2016 to make allowances for five million current pensioners to change their fixed annual payments for cash.

George Osborne said: “There are 5 million pensioners who are locked into annuities they have already bought.

“They should have the same freedoms as we have given everyone else.

“For most people, sticking with that annuity is the right thing to do.

“But there will be some who would welcome being able to draw on that money as they choose - the same freedom we are offering those approaching retirement in April this year.

“So I am going to change the law to let that happen, and make sure we have the right guidance in place.

“People who’ve worked hard and saved hard all their lives should be trusted with their own pension.”

In his last Budget he reported higher growth, lower unemployment, falling inflation and a reduction in the deficit.

This was posted in Bdaily's Members' News section by Sophia Taha .