Osborne's 'Political' Pitch For Old And Young

Written By Unknown on Kamis, 19 Maret 2015 | 00.11

The Chancellor has delivered an "intensely political" Budget with broad appeal, cutting taxes for savers and offering more help for first-time buyers.

At the heart of his last Budget before May's General Election, George Osborne announced a Help To Buy ISA, which would see the Government contribute £50 for every £200 saved towards a deposit on a first home - a 25% top-up.

And he announced savers would not have to pay tax on the first £1,000 interest earned on their savings.

As he opened his sixth Budget, with just 50 days until the election, Mr Osborne confirmed the UK has grown faster than "any other major advanced economy in the world" and Britain was "walking tall again".

He said: "The hard work and sacrifice of the British people has paid off. The original debt target I set out in my first Budget has been met.

"We will end this Parliament with Britain's national debt share falling. The sun is starting to shine – and we are fixing the roof."

Mr Osborne also said the 40p tax rate threshold will increase from £42,385 to £43,300, and the level at which people start to pay income tax on wages will rise to £11,000.

The changes on the 40p tax showed the Conservatives' commitment to raising that threshold to £50,000 by 2020, as pledged at the party's autumn conference, he said.

However, the Chancellor tried to dodge any allegations of an electioneering Budget by insisting his plans for the economy were responsible.

Announcing a £9bn windfall from bank sales, falling welfare bills and lower debt interest, he said the extra money would be used to pay down the national debt and not be splashed on sweeteners.

Sky's Political Correspondent Sophy Ridge said: "With just 50 days until the election, George Osborne's Budget was always going to be intensely political.

"Much of it was spent shooting down Labour attack lines – specifically on the claim that the Tories would reduce spending to 1930s levels. By some clever number crunching, the Conservatives can now claim that spending will be at the level seen in 2000."

:: Updates and analysis with the Sky News team

Other measures included a so-called "Google tax" of 25% for multinationals which move their profits abroad, as well as an increase of the bank levy to 0.21%, raising £900m a year.

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  1. Gallery: Reactions To The Budget: In Pictures

    Grimaces, grins, laughter and plain bewilderment were on show at Westminster, as MPs' reacted to the last Budget before the May election. Continue through for more images

The Labour frontbench look nonplussed at the Chancellor's speech

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