Bridgend based accountancy practice Graham Paul, is warning local people to look closely at this year’s budget announcements before presuming it’s all good news.

Gordon Brown delivered his eleventh, and what is expected to be his final, Budget yesterday. This year’s measures contained a few shocks, with the Chancellor’s tax cut provoking an uproarious reaction from Labour and Conservative benches alike.

But what does the 2007 Budget mean for you, your family and your business?

Summary of Key Proposals

• The main proposal this year is a 2p cut in the basic rate of income tax. However, the Chancellor also scrapped the 10p lower rate.
  
  
• Fuel duty will rise by 2p but will be delayed for six months, while road tax on ‘gas guzzling’ vehicles will rise to £300 this year. From 2008 that will rise to £400, but the least polluting cars will have their road tax cut to £35. These measures are to protect the environment and tackle climate change.
  
  
• Corporation tax has been cut from 30p to 28p from April 2008.
  
  
• The Inheritance tax threshold will rise from £285,000 to £350,000 by 2010.
  
  
• There will be further support for families, with the child element of the Child Tax Credit increasing by £150 per annum.

John Squire, partner at Graham Paul comments: "While the income tax cuts initially sound like good news, the abolishment of the low rate tax threshold could result in hard working middle income families actually being worse off. As always it’s the detail which people need to beware of.

"The ambiguous announcements continued when it comes to business. There was good news, for example the cut from the current 30% corporate tax for business rate was welcomed by business groups who had called for a cut to help restore the UK's competitiveness. However, the rate of corporation tax paid by smaller firms is to rise from 19% to 22% in 2009."

For more information contact Graham Paul on 01656 679 800