2014 Budget and Students

A few days ago, Chancellor George Osborne delivered his 2014 Budget. And as important as it is for economic students to catch up with news like this, students in general should know at least a few key points that can affect us.
Even though the Chancellor George Osborne has promised more apprenticeships for young people to help solve the country’s youth unemployment problem in this budget, it’s obvious that we were barely mentioned in it. Some might say this is simply because we are less likely to vote than the elderly. Even then, our generation is seemingly expected to pay for these lavish plans while overcoming extreme economic and social challenges in isolation. Record numbers of under-25s live at home, youth unemployment is nearly a million, yet as graduates stagnate, old white middle England continues to borrow from our future.The Chancellor unveiled tax cuts for savers, a new above-inflation Pensioner Bond, reductions in pension tax, and most importantly of all, the halving of bingo duty.
Speaking to the House of Commons, the chancellor of the exchequer said: “To make sure we give young people the skills they need to get good jobs in this modern world, we’ve doubled the number of apprenticeships and I will extend the grants for smaller businesses to support over 100,000 more… And we’ll now develop new degree level apprenticeships too.”Commenting on Wednesday’s budget announcement, Local Government Association chairman Sir Merrick Cockell said: “The national housing shortage and lack of jobs for young people are two of the most pressing issues facing the country today. The Chancellor is right to address these in this year’s Budget and extra support announced for home buyers and small builders, along with additional funding for apprenticeships, are positive steps.In a sense, that’s good news isn’t it? We will get more support in terms of getting a job and paying our huge debt called “student loan”. The NUS noted at the proposal to fund 100,000 apprenticeships, “For these to be meaningful, thought needs to be given as to apprenticeship pay, which can legally be as low as £2.68 per hour.”In the end, all I can think of is how vague the Budget could do to us students.
Anyways, here are a few key points you might want to know about the 2014 Budget:
1,The personal allowance will increase by £500 to £10,500 next year, meaning you pay no tax on the first £10,500 you earn each year. The allowance is going up to £10,000 in April.
2, Cash and stocks ISAs will merge and the limit on the tax-free scheme increased to £15,000. Previously there was a limit of £5,500 for a cash ISA and £11,500 on a stocks ISA. The changes, which come into affect on July 1, also include an increased limit on Junior ISAs of £4,000
3, The cost of cigarettes will increase 2% above inflation – 28p per packet of 20. Beer duty cut by 1p a pint. Duty on spirits and ordinary cider frozen
4, Fuel duty rise planned for September will not happen. £7bn package to cut energy bills was revealed.
5, Twelve-sided £1 coin to be introduced in 2017. This kind of reminds me that I’d better keep at least one of these old coins so one day they may actually become priceless.

Source: The Mirror
The Independent

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Alisa L

About Alisa L

Alisa graduated in the Summer of 2014 and is no longer blogging for this site. Alisa, a student from Vietnam, blogged about her third year of BSc Financial Economics and her time as a Course Representative.

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