Budget Day

It’s budget day today and as I get quite excited by such things I thought I’d share the highlights with you. Some good news surprises (additional money for flood defences and pot holes which will put a smile on the faces of my highways teams) and some confirmation on the continued squeeze we face in local government. This confirms my view that our transformation programme focused on how we deliver services differently across the county is a continued priority for us.  

Here are some immediate thoughts from the Chancellor's speech regarding possible impact for Wiltshire.

• Office of Budget Responsibility forecast for growth up from 2.4% to 2.7% in 2014-15, with similar rises in later years - so greater taxation than was forecast (+ £16bn assumed). Assumed higher employment and lower national debt as a result, with no structural deficit forecast in 2018-19 if we stick to current plans (i.e. no borrowing that year forecast to fund national public sector spend).

• New £1 coin to be introduced in 3 years - will mean we need to plan for in terms of cash machines, etc.

• Entering a critical phase of recovery and will not let public spending increase, despite an election "austerity grinds on..." There will thus be cuts after 2015, with a new charter for budget responsibility this Autumn.

• Public Service Pension reforms continue - no new news. But taxation of pension changes, e.g. doubling of Pension Lump Sum tax free sum.

• Pay constraints in public sector continuing - no specific % figure mentioned but maybe in details published later.

• Cap on Welfare spending 2015-16 published today £119bn and will rise with inflation to £127bn by 2018-19.

• 15% Stamp duty changes to +£500k where owned by companies but bought for houses.

• LIBOR fines will continue to be directed to MoD casualties and extended to rescue services (e.g. lifeboat service) and others such as the Scouts, St John's Ambulance, etc.

• VAT fuel removed for emergency vehicles - potential advantage for Police.

• Magna Carta 800 year anniversary grant awarded to the Trust.

• £0.5bn available for small house building firms. Help to buy equity loan scheme to be extended to 2020.

• This Autumn will set out more detail on capital spend for next 10 years.

• £140m more available for damaged flood defences. We will have to establish what is coming to Wiltshire and if this is actually on top of last week's announcement or merely confirmation.

• £200m for LA to bid to for potholes - we will watch scheme requirements and ensure we bid.

• 20% tax relief for regional theatre.

• Carbon Reduction Tax capped at £18 from 2018.

• Fuel duty tax frozen for September 2014 confirmed as not going ahead. Will mean apart from commercial value changes in price at pump no other increase in assumed rise in our fuel prices needed.

• Whiskey and cider duty frozen, beer cut by 1p a pint. No direct impact on Wiltshire Council, more to make me smile and keep me going.

• Income Tax free level raised to £10,500. Higher rate level to rise slightly to £41,865

Speak again soon. For daily updates, discussion, personal opinion, comment or just to connect or keep in touch you can follow me on Twitter at http://twitter.com/#!/drcarltonbrand.

Carlton