YESTERDAY’S Autumn Statement from Chancellor George Osborne was peppered with sweeteners for hard-pressed families and firms in Oxfordshire.

From April next year, the first £10,600 of earnings will be tax free, up from £10,000.

And workers will not pay the higher-band of tax of 40 per cent unless their pay packet tops £42,385 a year, up from the current level of £41,865.

Other measures included a freeze on fuel duty, and scrapping of air passenger tax for children under 12.

Perhaps the biggest boost was for first-time buyers and families, who look set to save thousands thanks to Stamp Duty changes. H

igh street shops, cafes and pubs were given an extension of business tax relief and a holiday from National Insurance for apprentices under 25.

There was also a tax break for research and development, plus help for orchestras and children’s TV production

 

SMALL BUSINESSES

BUTCHER Paul England said an extension of business rate relief would help his family business, but he’d have liked more from the Chancellor.

Mr England, who runs Summertown-based Alcock’s with wife Lee, said: “The Chancellor says he will review business rates but I’d rather he did something about it right away. When will this review take place and how much will it mean to high street businesses like mine?

“It’s just prolonging it, when what would have been good would be more help now.”

Oxford Mail:

  • Paul England of Alcock’s Butchers      Picture: OX71512 Simon Williams

But Mr England, who took on Chris Edwards, 18, from Banbury as an apprentice in September, welcomed the announcement that National Insurance contributions for trainees under 25 would be abolished.

He added: “The apprenticeship wages are not that brilliant, so the employer’s contribution is next to nothing, but it all helps.”

Richard Baxter, partner and head of the corporate law team at Withy King’s Oxford office, said: “The Chancellor is doing the right thing with apprentices.

“What we need is not internships or zero hours – investing in young people and trying to give them proper employment is sensible.”

 

THE FAMILY

OXFORD mother-of-two Sue Frizzell, 47, was less than impressed by George Osborne’s Autumn Statement.

In an attempt to woo hard-pressed families, the Chancellor announced that the income tax threshold would rise and that air passenger duty for under-16s would be scrapped.

He said that from April no-one would pay any tax on the first £10,600 of their earnings, a £600 increase on the current threshold.

And air passenger duty would be scrapped for under-12s from May and for under-16s in 2016.

Oxford Mail:

  • Sue Frizzell with her daughters Amber, 11, right, and Ruby, eight Picture: OX71516 Julian Rus

But Mrs Frizzell, of Radcliffe Road, said the measures were “nothing to be excited about”.
She said: “The tax threshold won’t help me that much because I am lucky to earn that much anyway.

“I care very little about scrapping air passenger duty, because I think we need to be encouraging people to fly less.

“If these are things I am supposed to be excited by, it is a bit pathetic.

“It just seems like the Conservatives are more interested in keeping big businesses happy.”

 

STAMP DUTY

FIRST-time buyers and young families will find buying a house cheaper from today.

The new, graduated scale, which came in to force at midnight, will mean buyers pay two per cent of purchase price for properties costing between £125,000 and £250,000 and five per cent for those between £250,000 and £925,000.

But the rate jumps to 10 per cent for properties costing from £925,000 to £1.5m and 12 per cent for anything above that.

Under the old system, buyers paid the percentage above thresholds on the whole purchase price but the new system will deduct the first tax-free £125,000, like income tax.

Oxford Mail:

  • Mark Charter of Carter Jonas

With the average cost of a house in Oxfordshire at £288,000, the change means a buyer will save £4,200, paying just £4,500 in stamp duty now, versus £8,700 under the old scheme.

But anyone buying a house for £2.25m will find their stamp duty bill has gone up by £25,000 – from £157,500 to £183,750.

Mark Charter, of Oxford-based estate agents Carter Jonas, said: “The change to stamp duty is an unexpected piece of good news.

“It will make buying a house cheaper for first-time buyers and hard-working families who are spending up to £925,000.

“The cost of moving will be a little less from now on.”

 

FUEL DUTY

TAXI driver Colin Dobson has spent almost £3,500 on petrol since January.

As he expects that amount to reach £4,500 by the end of the year, he was pleased fuel duty was frozen in the Autumn Statement.

Mr Dobson said: “Fuel is my single biggest expense, so the announcement that it’s not going to be going up is a welcome thing.”

Oxford Mail:

  • Taxi driver Colin Dobson

But he added: “You can’t help thinking they are just tinkering around the edges in the run-up to the election in May.

“I would have liked to have seen more, such as a cut in fuel duty, but even a freeze is significant.”        

 

THE PUBLICAN

PUB manager Owain Jones toasted Chancellor George Osborne’s decision to extend business rate relief for another year.

A discount of up to £1,000 is already in place for high street pubs, cafes and shops but it will be increased by half to £1,500 from next year.

Mr Jones, who runs The Fishes in North Hinksey village, was also pleased there will be a review of business rates.

Oxford Mail:

  • Manager of The Fishes pub Owain Jones   Picture:OX71513 Julian Rus

But he questioned whether a review would have any concrete benefits in the long run. He said: “We pay £1,000 a week in business rates so that’s great he’s reviewing this.

“It’s a stealth tax and although we try our best, we work on very tight margins.

“Any sort of help with the cost could really take the pressure off.”

Mr Jones, who is part of the Peach Pubs group, also welcomed the news that NI tax on young apprentices will be abolished for employers.

He added: “That’s awesome, because we are always looking to give people a chance.”

 

AIR AMBULANCE

TAX relief and extra funding was pledged for Oxfordshire’s air ambulance service by the Chancellor.

In his Autumn Statement, Mr Osborne said air ambulances in the country such as Thames Valley and Chiltern Air Ambulance (TVCAA) could claim back VAT. They would also be eligible for a slice of a £5m pot of extra support.

A TVCAA statement said: “We are delighted with this news and while we have yet to work out details and what this means for the Thames Valley and Chiltern Air Ambulance, we hope this will help towards funding our vital service.”

The VAT relief is significant, the Association of Air Ambulances (AAA) said yesterday, because it will mean there is no need for the charities to use complex systems to recover it, saving on administrative costs.

The AAA said: “Although the fine detail has not yet been fully provided, the AAA will be working with the Treasury and HMRC to gain a better understanding of this exciting news and advising its members of the resultant changes.”

 

TV TAX CREDITS

NEW tax credits for the children’s television industry will mean more British programmes are broadcast, according to a Summertown-based producer.

Mike Watts, of Novel Entertainment, has spent eight years campaigining for children’s shows to receive tax breaks.

With wife and business partner Lucinda Whiteley, Mr Watts produces the Horrid Henry TV series and feature films and has finished a live action series for CBBC.

The changes announced by the Chancellor yesterday bring live action children’s programming into line with the film and animation industries, which are already eligible for tax credits.

Oxford Mail:

  • Mike Watts of Novel Entertainment Picture: OX71518 Greg Blatchford

Mr Watts, who chairs national pressure group Producers Alliance for Cinema and Television, said: “When tax credits were introduced last year for animation, there was a big uplift in the number of productions that went ahead and it’s brought much-needed fresh work to that sector. We knew of many producers having problems finding funding for programmes aimed at British kids.

“The Government supported film tax credits and extended it to theatre earlier this year and now they’ve included live-action children’s programming which is great.

“It’s enormously important and will mean more TV programmes that reflect the lives of British kids.”

 

HEALTH SERVICES

EXTRA services with a further £1.2bn for GP services will be “almost impossible” to provide, a leading county family doctor warned.

Dr Prit Buttar, county chairman of the British Medical Association’s Oxfordshire Local Medical Committee, spoke after extra funds were announced.

Chancellor George Osborne said the NHS – spending £114bn this year – will get an extra £2bn a year to 2020 amid concerns about rising demand on services. And he said fines for bank manipulation of foreign exchanges will pay for a £1.2bn fund for “advanced care, such as chemotherapy and dialysis” in GP practices.

Dr Buttar, of Abingdon Surgery in Stert Street, said: “It looks as if this money will come with major strings attached. It does nothing to correct the long-term underfunding of general practice. The overall NHS budget has broadly stayed the same during this Government. The proportion going to GPs has fallen from nearly 12 per cent to less than nine per cent, at a time when consultation rates have gone up by about 15 per cent. In other words, GPs are currently doing 15 per cent more work, and have lost at least 25 per cent of their practice funding. 

“In these circumstances, it is difficult to see how overstretched services will be able to take advantage of this money to provide even more services.”

 

 

 

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