Exeter Responds to the Budget 2014
Exeter Citizen’s Advice Bureau has said that the Government must do more to work for “those who are making do and can’t save” and warns that many of the government’s austerity cuts “have yet to bite”.
The comments from Exeter CAB come after the Chancellor, George Osborne, yesterday revealed his 5th budget to MPs in parliament.
The budget, described by Mr Osborne as one for “makers, doers and savers”, included a range of new measures including raising the personal income allowance, introducing new pensions rules and a ‘New Isa’ with a tax free saving limit of £15,000 per year.
Steve Barriball Chief Executive of Exeter CAB welcomed some of the new measures but said that the Budget didn’t do enough to help those in Exeter and elsewhere stuggling with the cost of living.
He said: “The Chancellor talked about making, doing and saving. This Budget needs to work for those who are making do and can’t save. Those on low incomes face a daily struggle to fight off poverty.
“This year Exeter CAB has seen increases of more than 50% in enquiries about housing association and local authority rent arrears and Council Tax arrears. For many the priority is making ends meet. We welcome proposals that will see more cash for hard-pressed households.”
“Middle income families have had to adjust and savers will welcome the extra support. The proposals to free up pensions are welcome, particularly the new ‘right to advice’, which recognises the significant value of impartial, trusted advice. I hope Government departments across Whitehall will follow suit and formally recognise the value of advice in helping people cope with other policy areas.”
“We're half way through the austerity programme and many spending cuts have yet to bite. Families are feeling the cumulative impact of the stripping away of support and services from all sides. Support for childcare will be a welcome relief but it's only partial respite for households dealing with almost a decade of austerity.”
"Better targeting childcare support to the poorest families will help to make work pay for them. Stronger, immediate investment in house building would ease the pressure on people struggling to manage rocketing housing costs. Putting weight behind efforts to help young people into work will prevent a new generation of long-term jobseekers."
“Government must take the long view of positive economic news. Unemployment is down but growing self-employment can be a sign of instability: self-employed people are as likely to need help with debts as unemployed people.”
However others in Exeter has praised the new budget saying that the changes will benefit most people’s lives.
Tim Walker the Head of Brewin Dolphin’s office in Exeter was fulsome with praise for the chancellor, he said: “Like a phoenix from the flames, Osborne’s policy sees the British pension rise from its deathbed, freed from fears over stealth taxes and over complication.
“This is a total game changer, and will result in the almost immediate death of the annuity – for which we have long called for. It is a huge change in the flexibility of the pension system, with lower taxes and higher lump sums.
“We welcome the fact that the government is willing to trust people with their own finances and await clarification on how the vast amount of necessary advice will be delivered.”
“The Chancellor has removed the ‘nanny knows best’ aspect of the ISA – allowing a far broader range of products, and the ability to switch from shares to cash and back again. With a massive increase in the amount that can be sheltered in an ISA wrapper, as well as the inclusion of peer to peer lending and shorter dated retail bonds, the ISA is now a far sharper tool in the tax planning toolkit.“
“Given the importance of retired individuals to Devon’s economy we expect these changes will have a local impact. We also expect to see a significant rise in the demand for advice on how best to benefit from the new rules.”
Likewise Adrian Hemmings, Simpkins Edwards Partner, who said that the budget would benefit business and drive economic growth in the South West.
He said:“This year’s budget set out the coalition’s stall for the election in 14 months. The Chancellor revealed many targeted measures that will have a cumulative effect in boosting those parts of the economy that he wishes to focus on, whilst at the same time increasing income through tighter tax compliance.
“The budget included a raft of measures to support businesses and encourage increased investment in manufacture, export and recruitment. Of particular pertinence to businesses in the South West region is the doubling of the annual investment allowance to £500,000, which has been extended to the end of 2015, and the R&D tax credit – measures that send a clear signal for businesses to invest in growth.
“The area of personal finance represents another hot topic, with the announcement of a big reform on the regime for ISAs and the annual limit now raised to £15,000. There are also several changes aimed at radically increasing flexibility for pensioners, meaning that now more than ever, people approaching retirement will need to carefully plan the best way to attain a sustainable and tax efficient income. This is potentially the most significant change in pension legislation in a generation.”
