Budget Provides Relief for Workers, Savers, and Drinkers

Giles McNeill, Conservative West Lindsey District Councillor for the Nettleham Ward, has welcomed a the announcements in the 2014 budget statement today which will save money for local residents.

George Osbourne MP, Chancellor of the Exchequer

Earners will find the personal tax allowance will rise to £10,500 from April 2015, cutting taxes for 25 million people and taking an additional 290,000 people out of paying income tax altogether. The rises in the personal allowance since 2010, implemented by the Coalition Government, mean that by April next year a typical, basic rate, taxpayer will be paying £805 less in tax than they would have been, with 3,200,000 people taken out of income tax altogether. The 2014 Budget measures do not result in any additional higher rate taxpayers. The full benefit will be passed on to higher rate taxpayers – everyone earning up to £100,000 will gain equally and will pay less tax because of this tax cut.

Meanwhile, savers will benefit from merging the cash ISA and stocks & shares ISA into a single New ISA with an annual limit of £15,000. Over 400,000 ISA holders in the East Midlands could benefit from the New ISA. Savers will also be glad to hear the ten pence starting rate of tax for savings income will be eliminated and, this zero rate will be extended to the first £5,000 of savings income, benefiting 1.5 million low-income savers.

In the biggest reform of pensions taxation in a century, the Chancellor announced that no one would be forced to buy an annuity if they don’t want to and there will be no punitive fifty per cent tax rate if you try and take more than your tax free lump sum.

Drinkers will find savings as the tax on beer will be cut by a penny a pint, helping local pubs. Duties on Scotch whisky and other spirits will be frozen, as will duty on ordinary cider. The duty escalator for wine, meanwhile, has been abolished. Cllr. McNeill said:

"The budget contains real measures that are designed to help people across the country with their cost of living. Those in work will take home more of their pay, with the increase in the personal allowance. Those who save will find their hard-erned savings will be taxed less. The duty paid on beer has been cut by a penny on the pint for the second year running.  

"Whilst the economic situation is beginning to show real signs of improvement, the parlous state of the nation's finances - the legacy of the last Labour Government - mean that the Chancellor has and will continue to make the difficult decisions which benefit hard-working people across Britain and contribute to the long-term economic viability."

No Council Tax Increase in West Lindsey

West Lindsey District Council has announced it will not increase its share of the Council Tax for 2014/15.

The freeze was announced in the council’s budget report, submitted to council on Monday, March 3, which also included plans for more than £2 million investment towards major projects. Leader of the council, Cllr. Jeff Summers said:

“We know times are hard for many people so we are delighted to be able to freeze Council Tax protecting residents from increased bills.”

The decision means that from April, residents will continue to pay the 2013/14 rate, meaning council tax has been frozen in three out of four y

Cllr. Jeff Summers, Conservative Leader
 of West Lindsey District Council

ears. Cllr. Summers added:

“The council’s entrepreneurial approach is being used to counter the continuing reductions in government grant with income generation and cost reduction offsetting the impact and allowing the council to freeze council tax. We continue to generate more income to avoid tax increases and are working hard to support communities and regenerate the district.

“We are also very pleased to be able to invest in major projects that we believe will help the district grow and prosper including rural transport, community and business grants and increasing housing availability.”

Those projects include:

• £250,000 grant funding available to invest in communities, providing finance in a way that helps people to help themselves
• £37,000 to support the Councillor Initiative Fund, which has already helped thousands of projects across the district
• £300,000 to develop a solution to rural transport connectivity
• £1.1m investment to return empty homes back into use
• £640,000 business relocation fund and commercial grant schemes to provide an attractive incentive to encourage business growth

It has also pledged its support to a new flooding relief scheme. It will offer 100% Council Tax exemption for up to one year, to support residents affected by flooding.

The council managed to find £1million of savings at a time when the budget allocation from central government is drastically reducing each year. However, the council is not complacent as it still needs to find £2million over the next two years to balance the budget. Cllr. Summers added:

“We recognise it is a testing time for public services generally but we are focusing on getting the job done. This means doing more of what local people value and protecting frontline services as we said we would.

“This budget is about growth and investment, at a time when others around us are looking at reducing, cutting and stopping, but we recognise this is key to our future. We will continue to drive forward efficiency plans and streamline services to deliver what our customers value”