This email was sent to Money Box subscribers on 23 March 2012

Dear Listener

 

I spent Budget Day in a bicycle factory. Pashley's Cycles makes handmade British bikes from scratch. Steel tubes go in one end and bicycles - and tricycles - come out the other. In between a team of more than 50 skilled workers braze, weld, paint, and assemble the finished products. The parts they do not make themselves - wheels, brake cables, gears etc - are all sourced in the UK and most seem to be bought just down the road. Well, it is in the Midlands, which can still boast of being the workshop of Britain.

 

My job there - if you can call it that in the company of people actually making things - was to analyse the Budget measures that affected our personal finances. And there was a lot more than usual - much of which we will cover in Money Box. But a succession of business people interviewed by presenter Jo Coburn said they did not find much in the Budget for them. The cut in corporation tax was welcomed by those who pay it. It was due to fall to 25 per cent from April and that has been cut to 24 pre cent then down to 23 per cent next year and 22 per cent from April 2014. The Chancellor made clear that his target is 20 per cent. But the small company rate is already that low and there was some disappointment that there was no cut in that too. And they were not at all clear how this budget for enterprise would help them.

 

At the end of the day I was sorry to leave the world of machines - where fabrication means something good - and return to the world of screens where fabrication is something to avoid.

 

***IN MONEY BOX THIS WEEK***

 

The positive headlines before the Budget Tax Bills To Fall For 20 Million - Daily Telegraph - transformed overnight into Granny Tax Hits Five Million Pensioners - Daily Telegraph - and even Osborne Picks The Pockets Of Pensioners - Daily Mail - and 5m Pensioners Robbed - Daily Express.

 

So how did the positive, tax-reforming Budget turn so quickly into a Budget which would raise tax on pensioners and others.

 

We will be looking at who will get tax cuts and who will pay for them. The so-called Granny Tax - which will hit more granddads in fact - will save more than a billion pounds a year and will go some way to pay for the three billion pound a year cut in the personal allowance.

 

The Government also announced changes in the plans to take back child benefit from better off parents. But who is better off. And how will the taking back be done. We hear from listeners and explain.

 

We will also be looking at the pasty tax which will add VAT to the price of some hot takeaway food bought from some types of premises.

 

Away from the Budget - hooray I hear you say - we will be looking at insurance companies which seem to be withdrawing cover from people who have an accident after drinking even if they are under the legal limit.

 

And the bank that insists on mortgage customers using its own solicitor to do the conveyancing on the new property. They can still use their own solicitor if they want, but they still have to pay for a bank nominated solicitor as well.

 

All that in our 24 minutes on Saturday at midday, or Sunday at 9pm, or anytime online at www.bbc.co.uk/podcasts/series/moneybox. Remember you can put in a regular order for our podcast. It is free.

 

There is more information on our website www.bbc.co.uk/moneybox where you can also download transcripts of past programmes and send us ideas or problems you want us to look into.

 

This newsletter is available at bbc.co.uk/moneybox/newsletter around the time it hits your inbox - tell your friends who do not subscribe. And you could join more than 28,400 people who now follow me on Twitter to enjoy - or rant about - my random but timely thoughts on money and a few other things whenever I am awake at twitter.com/paullewismoney. And there is a blog as well www.paullewismoney.blogspot.com.

 

I am back on Wednesday with Money Box Live on Wednesday at 3pm taking questions on benefits - a whole stream of changes begins in April - almost of them will mean less money for people who get tax credits, family benefits, or help as disabled or unemployed. But we can answer any questions on state pensions and benefits whatever your circumstances.

 

Best wishes,

 

Paul

 

PS. I will be on Breakfast on BBC One on Saturday talking about one of the items in our programme. And back on Breakfast later in the week, probably on Thursday and usually around 0640 and 0820 talking about a money story and answering emails and tweets. But the time, and occasionally the day, can vary.

 

 


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