“Budget for Growth” cut its forecast for growth in 2011 down from 2.1pc to 1.7pc. Prediction for 2012 to 2014 remains between 2.5 and 3pc each year. Budget for Growth? what’s behind Chancellor’s headline grabbing title?

Don’t rush to conclusions before you read the other two related headline numbers.

  • Borrowings in 2011 will be £146bn – £3bn below target, £122bn next year, and finally £29bn by 2015-16.
  • National debt is forecasted to be at 60% of national income this year, 71% in 2012 and finally 69% by 2015.

In summary, hold-on tight until 2015, but how will be the journey? are we going to have an easy ride or a bumpy one… read on…

Some of the key areas of impact are as follows:

Investors and Businesses:

  1. Corporation Tax will fall from 28% to 26% from April 2011. The rate will then be reduced by a further 1% in each of the following three years and will reach 23% by 2014 – it now makes more sense to declare true profits.
  2. Reduction in fuel duty has the potential to curb the rising business operational costs – good news and will help everyone.
  3. Private jet users to pay passenger duty for first time – well you can afford it anyway.
  4. Levy of up to £50,000 on ‘non-doms’ resident in the UK for 12 years – you guys have really got off the hook here, but hey we need you to continue investing here.
  5. Tax avoidance clampdown to raise £1bn this year – the message cannot be simpler!
  6. Plans to switch air passenger duty from passengers to planes have been dropped – this will help not only businesses that have staff jetting across the world but also the lucky ones who manage to still squeeze out their annual international vacation. 


  1. Most families with income earners will have to chip in a bit to fund the state costs – it is estimated that the recent announcements could cost families almost £ 30 Billion.
  2. The 1p reduction in fuel duty rather than a 4p increase - sigh of relief for most families who see their fuel bills climb every time they fill in their tanks.
  3. The forecast for unemployment has been increased for the period 2012 to 2015 -  watch out, not the time to be complacent. If you are in public sector, sorry too late to even buy your redundancy cover as most insurers do not offer it anymore to public sector employees, save what you can and jump the sinking ship as fast as you can.
  4. If you are under 25 and looking for apprenticeship – well you may find your break soon as the Budget announced 100,000 additional work experience placements over the next two years – no more excuses or blaming the state.
  5. If you are a pensioner and depend on state pension, watch out, you could miss out on almost £700 of income from the state pension – sorry you should have saved a bit more.
  6. Just hope that you are not amongst the 40,000 who might have to pay National Insurance – Bad luck if you are, not a lot you can do anyway.
  7. If you are at the bottom end of the ladder or an entrepreneur and can choose to be flexible with what you draw (declare!) as a salary  - good news as the annual personal allowance will rise to £8,105.
  8. Thresholds for various direct taxes would be linked to the consumer price index from April 2012. So what does this really mean?  The Government expects t o save £ 1.5bn by making this switch – benefits and pensions will increase more slowly while more of our income is eaten away by taxes.  
  9. The Treasury insisted the change did not affect income tax thresholds. Officials estimate that it will rake in almost £2bn in extra National Insurance by April 2016 – Clever!
  10. In the 2015-16 year the total savings is expected to be £10.6bn bringing total savings over the five years to an astonishing £27.6bn – Really?
  11. No additional changes to alcohol duty rates. Tobacco duty rates up by 2% above inflation, duty regime to be reformed – rolling tobacco targeted – sorry guys (who roll tobacco), you will not be ignored.
  12. Government-backed shared equity scheme to help 10,000 first-time buyers to purchase properties – well, finally your dream to get onto the housing ladder might well come true…
  13.  Gift Aid benefits limits to increase to £2,500 (from its current £ 500). No form filling for small donations – this will benefit charities by £240m – laudible, last thing you want is block people who are chartiatble with unnecessary forms.
  14. From 6 April 2012, there will be a reduced rate of inheritance tax of 36 per cent for estates leaving 10% or more to
    charity - The Big Society rewards you if you help the needy!

Finally, if you are a landlord … what does Budget 2011 mean to you?

Your tenants will continue to be tenants for the foreseeable future. Good news – probably but remember, you cannot continue to increase your rents just because there is more than one offer to rent your property, affordability is on the decline – so in the current climate, if a tenant offers to pay a rent that is too good to be true – it probably is.

I would always say this, albeit at the risk of boring you. Do not be pennywise… Best Rent Guarantee costs less than £ 120 for 12 months. Less than 30p per day can assure you a good sleep, cause if your tenant fails and you have taken our rent guarantee, WE will be worrying about the rent and collections if the tenant defaults.

Lastly, we cannot afford to beat Directline with those expensive TV advertisements on landlords buildings and contents insurance, but we can definitely beat them on pricing. We promise you a price beat guarantee, so please shout for us – we will be grateful to you and also offer you a £ 25 M & S cash voucher completely free if you.


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