A second Budget within a calendar year is highly unusual. Five years ago, in the run-up to the May 2010 General Election, the Conservatives announced that if elected they would hold an 'Emergency Budget' in order to reverse the policies of the previous Labour government and introduce measures aimed at tackling the UK's deficit. Although many Conservative manifesto pledges failed to survive the Coalition agreement with the Liberal Democrats, the Emergency Budget duly took place on 22 June 2010.

With the Conservatives having been in Government for the last five years the circumstances are different this time, but nonetheless within two weeks of his party winning the General Election on 7 May, Chancellor George Osborne announced that he would hold a 'Stability Budget' on 8 July because, in his words, 'I don't want to wait to turn the promises we made in the Election into a reality'.

Although many commentators expected the Conservatives to be the largest party following the May 2015 General Election, few predicted that they would win enough seats to be able to form an overall majority government and have the power to implement their manifesto in full. The Second Budget has provided the Chancellor with an opportunity to introduce measures on tax, spending and borrowing that he might not have been able to enact while in Government with his Coalition partners at the time of the Spring Budget on 18 March.

About this Report

This Budget Report was written immediately after the Chancellor delivered his Budget speech and offers a general overview of the main announcements. Please contact us for expert advice that is specific to your individual circumstances.

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The Ullyott report and analysis of the Chancellor's 18th March 2015 Budget is available as an electronic version, this will help you understand the winners and losers in both business and personal situations, to view click here

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Budget Highlights

'Britain is walking tall again', proclaims Chancellor

Chancellor George Osborne delivered his 2015 ‘pre-election’ Budget in bullish mood. Proclaiming that ‘Britain is walking tall again’, the Chancellor announced that the national debt target has been met and predicted the ‘end of austerity’ a year early.

The Office for Budget Responsibility has revised economic growth slightly upwards from 2.4% to 2.5% for 2015, while inflation has been revised down to 0.2% and borrowing levels revised downwards from the previous Autumn Statement forecast, to £90.2bn for 2014/15.

However, despite assigning significant funds from bank asset sales and lower welfare bills to ‘pay down the national debt’, the Chancellor announced plans for further deficit reduction.

While keen to emphasise the benefits of ‘sticking to the fiscal path’, the Chancellor found room for a number of measures for individuals and businesses.

Among the headline measures for individuals was the announcement of plans to scrap annual tax returns, replacing them with ‘digital tax accounts’. The income tax personal allowance will also see additional increases, rising to £10,800 next year and £11,000 from April 2017, while the higher rate threshold will see an above inflation rise from £42,385 to £43,300 by 2017/18. Meanwhile, the pension lifetime allowance will fall from £1.25m to £1m from 2016/17.

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The Winter Newsletter features, Tax incentives for R&D can you benefit? VAT for the digital business, salary sacrifice for the greater good, what is it, especially as pensions auto enrolement for businesses with fewer than 50 employees starts 1st June 2015 and your key tax dates and round up and more, to download your copy click here.

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