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In a Budget thin on content, the Chancellor still took the opportunity to impose a number of tax hikes or tweak existing measures.
Motorists, for example, will be mildly pleased that the 2p rise in fuel duty is being delayed by 6 months. However, smokers and drinkers won't be enamoured of an 11p increase on a packet of cigarettes and a 6% increase in alcohol tax (with a 2% annual rise for next four years). Beer goes up 4p a pint while cider will see a 3p increase, wine 14p and spirits 55p.
Pensioners though will be pleased that the winter fuel payment is to be increased to £250 for the over-60s, £400 for over-80s.
Meanwhile, from April 2009 child benefit for the first child will be increased to £20 a week. Also, the child element of the child tax credit for families on low and middle incomes will increase by £50 a year above inflation.
Elsewhere, the most polluting cars will see a £950 higher first year rate of road tax from April 2010. The move is aimed at encouraging companies to opt for less polluting vehicles in their corporate fleets, given all but the least polluting motor vehicles will face higher taxes.
The Chancellor also unveiled plans to bring in legislation designed to cut the practice of free plastic bags given out by retailers unless they voluntarily (before 2009) make attempts to cut down on their use.
It was also confirmed that the Air Passenger Duty (APD) airport tax scheme is to end and will be substituted with a tax per flight system from November 2009.
12 March 2008 © Moneyextra.com
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