Running commentary from Andrew Carter as the 2013 Budget happened.
I’m in my seat with the headphones on and my fingers are primed. Should be interesting. looking for initiatives around housing, business rates, and Heseltine amongst others.
GDP projected to be 0.6% in 2013 and 1.8% in 2014. 40% of UK exports go to Eurozone countries.
1 job lost in public sector compensated by 6 created in the private sector over the last year. issues of type and quality need to considered.
ONS stats last week suggest that the majority of these jobs are likely to be in South which has implications for our towns and cities in the Midlands and the North
Fiscally neutral budget means that whatever we hear later on around investment on housing, infrastructure and skills will be paid for by savings and reductions from elsewhere. raises questions about whether the sums that get announced will be large enough to be a stimulus for the economy.
education and health budgets safeguarded as is local government budget for 2013/2014. others reduced by additional 1%. welfare budget . . . . . . .
current public sector pay constraints to be extended. this will have implications for those cities such as Hastings, Swansea and Plymouth which have more than the 30% of jobs in the public sector
Private sector jobs created more quickly in North East, Yorks, and Midlands than other regions over the last 3 years.
Ceramics industry to be exempted from climate change levy. a win for Stoke and for Tristram Hunt one of its MPs
small biz initiatives incl. R&D credits increased by 10%, tax relief for investment in social enterprises, no stamp duty on shares traded on AIM companies. Corporation tax to be reduced again to 20p from 2015
Housing – Help to buy – £3.5bn on shared equity loans to home purchasers (extends existing scheme to new buyers); Mortgage guarantees to anyone looking to buy a new or existing home – £130bn for 3 years. Both demand policies should encourage the private house-builders to build more – we’ll see. on the supply side – statemnt to introduce support to boost the number of affordable homes by 15,000. given we need 240,000 more homes per year to keep up with existing demand and we’re only building approx. 100,000 per year this is small ‘beer’!!
Raising personal tax allowances to £10,000 will start in 2014 a year earlier than previously stated. will help lots of low paid workers in our towns and cities. it’ll also help lots of high paid workers as well
Update on 6 to 1 jobs stat. In relation to London the stat is 30 private sector jobs created for every 1 lost in the public sector. Anorak point: the ONS can’t allocate 200,000 private jobs to a place so the stat might be even higher.
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