Key Points:
National Insurance to be Cut
January saw the first cut in Class 1 National Insurance for employees since at least 1975, according to available data, or possibly ever. Just three months later, there will be another one.
For employees paid between £12,571 to £50,270 a year, the current NI rate is 10% on earnings (down from 12% before January) and 2% on earnings above that. The chancellor said this would fall to 8% in April (bbc.co.uk/news).
ISA and Savings
A new tax-free Individual Savings Account (Isa) will be available to savers. The money invested will be directed to British businesses.
Savers will be allowed to save £5,000 a year into the British Isa, on top of the existing Isa allowance of £20,000. No start date has been announced.
National Savings and Investments (NS&I) will offer British Savings Bonds for savers willing to lock their money away for three years in April. The interest rate is yet to be set (bbc.co.uk/news).
Paula Higgins, CEO of Homeowners Alliance comments:
“Today’s announced support for new homes doesn’t scratch the surface. We need to get Britain building to solve the acute lack of housing and grow the economy. The generation gap worsens – 3.9 million young people have given up on homeownership; and almost 2 million of them have homeowning parents.
“No announcement on Lifetime ISA reform is such a shame. Clearly the government doesn’t really want to help first time buyers…”
The disappointment in the lack of news in the property world is echoed by from John Jones, head of conveyancing at Jackson Lees.
“Today’s budget is a missed opportunity to help those struggling to get onto the property ladder. I would, at the very least, have liked to have seen a return of the ‘Help to Buy’ scheme and an extension of the Stamp Duty Land Tax holiday.
“Whilst the promise of more housing is a positive step towards addressing the chronic shortage that exists across the UK, it does little to help those who are wanting to buy now.
“Some of the measures announced by the chancellor may put money back into people’s pockets, but it is loose change compared to the amounts needed to buy property and, particularly in a cost-of-living crisis, continues to put home ownership out of reach for far too many.”
