Wednesday 22nd April 2009 marks the second of Alistair Darlings UK Budget for the ruling Labour Government and below we have a brief analysis of the salient points outlined at the dispatch box. With the UK in a deep recession with 2.1 million unemployed the timing of his budget could not come at a worse time for the ailing chancellor of the exchequer not least because of a probable general election in mid 2010.

This 2009 budget was widely anticipated to rein in spending in an attempt to reduce the huge borrowing deficit which now stands at around £150 Billion (expected to be £175 Billion by the end of 2009)  and what followed was considered to be predictable in his attempts to speed up recovery and build on the strengths of the UK economy.

Budget 2009 in Brief

1. Job Centre plus network 1.7 billion funding increase to ensure that out of work people can be helped back into the labour market quickly along with unemployed under 25′s long term jobless to receive job training and/or job allocation acreating an extra 250,000 jobs. Also announced up to 400million to keep the young in education

2. Further 6 months extension to the mortgage protection scheme and stamp duty holiday extended to houses of less than £175,000 property value.

3. More businesses can delay increase in paying their corporation tax

4. Car scrappage scheme – £2,000 discount available from end of this month when customer trade in cars over 10 years old.

5. Reducing tax loopholes and avoidance schems saving £1 billion each year.

6. From April 2011, restrict pension tax relief for incomes over £150,000.

7. New higher rate of 50% tax for high earners (top 1% of earners) from April 2010, a year earlier and 5% more than planned.

8. Fuel duty up 2p per litre from September 09.

9. Alcohol and Tobacco duty up 2% from 6pm 22nd April 09.

10. No changes to taxes for the majority of taxpayer this financial year.

11. £50 million modernisation program for armed forces accommodation.

12. Green technology  – £435 million extra to deliver energy efficiency in UK homes.

13. From April 2010 Child element of child tax credit to increase by £20 per month.

14. State Pensions will rise in real terms and winter fuel allowance to be extend and capital disregarded on pension credit raised to £10,000.

15. Tax free element of ISA’s extended to £10,200 with up £5,100 able to be invested within the cash element.

Tells us what this 2009 budget means to you. Will the changes implimented effect you? What do you think about the increases in taxation? Are you in the armed forces, do you like hear about modernisation of your housing? Has this budget secured your vote for the forthcoming general election?