March 2013 Budget — 25 Mar 2013 at 21:46
Iain Duncan Smith MP, Chingford and Woodford Green voted to set a budget for 2013-14 involving raising £612bn and spending £720bn; continuing to reduce corporation tax, introducing a scheme to help people buy homes worth up to £600,000 and to increase the personal income tax allowance for those of working age.
The majority of MPs voted in favour of the March 2013 Budget which included a reduction in corporation tax, a cancellation of planned fuel duty rises, the introduction of taxpayer support for those buying homes worth up to £600,000 and an increase in the personal income tax free allowance for those of working age.
The budget approved by the majority of MPs for 2013-14 involved raising £612bn and spending £720bn (a deficit of £108bn).
- Continuing the planned reductions in corporation tax; announcing a reduction in the main rate of corporation tax by an additional 1 percentage point in April 2015.
- The introduction of a £2,000 "employment allowance" which employers can offset against National Insurance contributions.
- The introduction of the "Help to Buy" scheme which provides a loan, or a mortgage gaurentee for those purchasing homes worth up to £600,000
- Cancellation of the fuel duty increase that was planned for 1 September 2013
- Announcing the income tax, tax free personal allowance will be increased by £560 to £10,000 in 2014-15
- The introduction of a Tax-Free Childcare Scheme - support for working families with the Government paying 20 per cent of their childcare costs up to £1,200 per child per year
- The introduction of the single-tier State Pension in 2016-17
- Implements the £72,000 cap on reasonable social care costs
- The announcement that a General Anti-Abuse Rule will be introduced in Finance Bill 2013 to deter abusive tax avoidance schemes and strengthen HMRC’s means of tackling them;
- A reduction in general beer duty by 2 per cent from 25 March 2013
- The additional rate of income tax, applying to income over £150,000 was reduced to 45% in 2013/14 from 50%.
- The amount spent on investing assets in a year which a company (or self-employed individual) can deduct from their profits prior to the calculation of corporation tax due on the profits was increased from £25,000 to £250,000 for two years, applying from 1 January 2013. The amount is known as the Annual Investment Allowance (AIA). The government expects this reduce the corporation tax take by £910m in 2014/15, the one full financial year covered by the two year period.
- A freeze in the inheritance tax threshold for three years from 2015-16, increasing the expected tax take by £170m by the end of the period.
The motion which was technically approved via this vote stated:
- (1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.
- (2) This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide -
- (a) for zero-rating or exempting a supply, acquisition or importation;
- (b) for refunding an amount of tax;
- (c) for any relief, other than a relief that—
- (i) so far as it is applicable to goods, applies to goods of every description, and
- (ii) so far as it is applicable to services, applies to services of every description.
Votes by party, red entries are votes against the majority for that party.
What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (Aye)||Minority (No)||Both||Turnout|
|Con||256 (+1 tell)||0||0||84.3%|
|Lab||0||223 (+2 tell)||0||87.2%|
|LDem||43 (+1 tell)||0||0||77.2%|