The London Daily News

24 March, 2010 02:15 (GMT +00:00)

Budget for continued recovery "nothing pre-ordained”, first time buyers get fillip

City News Desk

In an otherwise lack lustre budget, the Chancellor Alistair Darling has thrown a fillip to first time buyers with the stamp duty threshold being increased as of tomorrow with it doubling to £250,000 benefiting 9out of 10 first time buyers. The increase in the threshold for first time buyers will be "funded paid for by 5% increase in homes valued over £1 million.

There was a respite for those who have excluded from the mainstream financial system with a scheme to allow 1 million more people to have bank accounts.

But the Chancellor warned that there be:

"No return to business as usual for banks"

Savers will also benefit with ISA's increase to £10,200 with half in cash allowed to be deposited.

The Chancellors forecasts for growth in the economy with 2010 grow 1-1.5% 2011 3-3.5% forecasts other years unchanged.

The inflation target of 2% 2011 remains, with public sector borrowing for this year downgraded from £178billion to £167 billion, because of strong receipts from VAT and PAYE payments.

The Chancellor reemphasised that making immediate cuts to public borrowing would risk "removing demand from the economy," the Chancellor is expecting borrowing to be 11% of GDP this year.

Text Comments

Post a Text Comment

There are currently no Item comments.