Emergency Budget

It was a tough budget to deal with the 155 Billion Government debt left by the last Labour Government. As this blog stated the new Coalition Government had to raise taxes, thus the increase in VAT from 17.5% to 20% and CGT from 18% to 28%. Also those on the high end of pay in the public sector will see a freeze for two years, while those in a higher tax bracket will see a reduction in tax credits. But as this is a Coalition Government we see the influence of the Lib Dems, the Budget sees those earning up to 7,475 are taking out of paying tax. This was a major Lib Dem policy commitment. As to build business confidence the Coalition Government has reduced Corporation Tax over the next few years. This was a good tough budget folks, as predicted VAT has gone up, this blog had it at 19% but its 20%, the freeze on public sector pay for those over 21, 000 is a good idea, cant hurt the low pay and they will get an increase of 250 pounds. Also those in the higher tax bracket will see a reduction in tax credits, these credits it can be argued had become tax cuts. Lets see what the Country thinks folks.