Increased personal allowance, a cut in beer tax and VAT-free fuel for air ambulance confirmed in budget

In his 55-minute speech in the House of Commons today, Chancellor George Osborne announced an increase to the permitted personal allowance, which will see residents having to earn more than £10,500 before they pay income tax.
New tax-free “super ISA” saving accounts will allow people to save up to £15,000 from July, while changes to annuity tax rules to allow pensioners access to their own pension funds are also to come into force.
Businesses are also to benefit, with corporation tax to fall to 21 per cent, and then to 20 per cent in 2015, while Mr Osborne also announced the creation of a £7bn package which will cut manufacturers energy bills.
Following the harsh weather this winter, an additional £140m was put forward for repairs to flood defences while local authorities would be able to bid for a share of £20million towards the cost of pothole repairs.
Plans for a fuel duty rise in September, which would have seen fuel costs soar by 20p, were abolished and beer duty has also been cut by 1 per cent.
Duty on whiskey and other spirits will rise in line with inflation.
Meanwhile, air ambulances and search and rescue vehicles will benefit from VAT free fuel, inheritance tax will be waived for those in the emergency services and the 10p tax rate on savings has been abolished.
The budget was welcomed by the Thames Valley Chamber of Commerce.
Its policy executive Clair Prosser said: “Business wanted a budget that was disciplined, focused, and geared towards the creation of wealth and jobs – and that’s what the Chancellor has delivered. This is good news for businesses in the Thames Valley.
“The unexpected and radical modernisation of pension rules and ISAs will be welcome news for many businesspeople and their employees.
“Greater flexibility and choice, combined with an end to some of the arbitrary and punitive tax rules that undercut prudent savers, favour aspiration, enterprise and long-term planning.”
Today’s budget was also welcomed by Newbury accountants and business advisers James Cowper.
Partner at the firm, Ian Miles, said: “Our pensions are singularly the largest saving we all make. The decision by the Chancellor to give greater freedom over our pension pots is particularly welcome.”
Partner in James Cowper’s business tax team, Sharon Bedford, added: “All businesses will benefit from the reduced charged for energy, greater help with export finance and from the investment allowance. It is fair to say that this is a good budget for Newbury businesses.”
Newbury MP Richard Benyon said: "This Budget is great news for the many savers in the constituency who have suffered as a result of the recession, many of whom have worked and saved hard all their lives.
“Growth forecast at 2.7%, meaning that the economy will be £16 billion larger than forecast four months ago, highlights that under this Government, the economy is in safe hands and is heading in the right direction.
“It seems to have been overlooked somewhat, but I am delighted that the Chancellor has frozen petrol duty, which is a major concern of our rural communities.”