Budget 2014: What to expect.

The Chancellor will set out his plans for the UK economy over the next 12 months. Since taking over at the treasury he has overseen the economic recovery but he has said that his job is far from done. According to Treasury sources the economic plan was working but there was still much to do to navigate the country out of these crisis of 2008.

This will be the George Osbourne’s fifth Budget and one in which he is expected to increase the amount of money workers can earn without paying tax to £10,000. The Chancellor is residing over a backdrop of an improving economy and a resurgent property market. Inflation is also falling and the economic recovery is expecting to to be amongst the highest in an of the Western economies. The Chancellor who has been criticised by many commentators will feel vindicated so far as the economy goes turns the corner and the future looks brighter

The Labour party has rounded on the government by saying that there is a standard of living crisis and that many families are worse off under a Conservative government. There have been large numbers of people affected by benefit cuts and tax cuts have only benefit the rich. They are also concerned that the recovery in the housing market is being driven by debt with schemes such as the Help To Buy Scheme. London has been the main beneficiary of this policy and they would like to see the governments flagship policy changed to lift further price increases in London and the south east.

They would also like to see the Chancellor help the majority of people that are being affected by the squeeze in household budgets as prices are rising faster than wages across Britain. Of concern to all parties is the massive levels of personal debt in Britain and the Chancellor will be urged to do something about this problem that is not going to go away. The government has already announced plans to help families with young children by offering up to £2,000in subsidised childcare after the next general election.

They have also announced plans to increase the minimum wage to £6.50 per hour. There is also speculation that the government will reduce the duty on bingo from 20% to 15%. It is also highly likely that they will also extend the Help To Buy Scheme for new homes by a further 4 years to 2020. The scheme was due to end in 2016 and has already been welcomed by housebuilders who have already seen a boost to their share price in expectation of this.

There are calls for the government to support growth in other parts of the economy and other parts of the country where the economic recovery has yet to take hold. According to the Labour party more needs to be done to strengthen our manufacturing base and less to help the square mile.