So what did Budget 2012 bring for the people of North Devon?
Well, funding for Enterprise Zones in Scotland, ultra-fast broadband for small cities, a tax credit scheme for the television video games industries, and a consultation on improving the south east’s airports don’t really do anything for us.
So what did we get?
A triple whammy that hits pensioners, motorists and public sector workers, that’s what. And they’re three things the Westcountry has rather a lot of.
Age related allowances are being removed for new pensioners from April 2013 and frozen for existing pensioners until the personal allowance catches up. Not something many will welcome on top of the depressed annuity rates available in the current market place: less income and more tax.
The increase in everyone’s personal allowance to £9,205 is also not the gift it appears when inflation is so high.
The planned increase in fuel duty will do nothing to help people in North Devon, where for many a car is essential.
The third bit of bad news is the proposed shake up to public sector pay. While it’s necessary, we have a disproportionality high per centage of people in the public sector here and when they get paid less there’s knock on effect on their secondary spend.
Business taxes
The reduction in the Corporation Tax rate for large companies to 24% may be welcomed by them, but it does nothing to help small local businesses.
For those smaller companies, the Corporation Tax rate stays at 20%, but the reduction in available Annual Investment Allowances to £25,000 might mean you want to make capital spend now, rather than in April.
All in all a depressing Budget rather than one that’s ‘aspirational’. Unless you’re a higher rate tax payer aspiring to 50% relief on any pension contributions you make before 5 April.






