Well, i said i would do it and so here it is. If you’r still waiting for my review of Oz by that same logic…. it’s coming. Anyway, onto the Budget for the UK as announced on Wednesday the 20th of March.
Right, lets start with the bits that are easiest to understand; the tariffs. Number 1) Fuel prices have been frozen again, reducing the price of fuel by a whooping 13p. That is A LOT… but it’s been frozen now for almost an entire year. Eventually, somethings gonna give and then the cost will go up no end and i fear the coming of that day but until then, where getting away with it.
2) Price of all tobacco to increases by 25p. That’s A LOT. Now, i don’t smoke and think it’s a dirty horrible habit, but i know it relives stress and that people feel better after they’ve satisfied there need for it (A need they wouldn’t have if they had never had started…). So, 25p increase is yet another blow to smokers by an smoke unfriendly government.
3) Penny of pints. YAY! 1p of every pint. It’s a desperate and feeble last ditch attempt to try and stop the traditional British pubs all over the country going out of business. They have been suffering from the cheep prices of alcohol at supermarkets and the majority of the British youth culture would rather go to a night club than a pub. Although i’m in favor of the tariff, i doubt it will make any difference.
Next we have something new in the budget. It’s a housing plan. Basically, houses in Britain are very very expensive. Everything from new builds, thatched cottages, tersest houses to mansions, have all gone up in price to scary amounts over the past ten years, and people are finding it very hard to move up the property ladder. At the moment, people are moving from say, a two bedroom apartment into another two bedroom apartment, because, although there getting more money from selling, there still not getting enough to buy the next type of property up the ladder. People have even been moving down it and a lot of youngsters can’t get on, even when helped by parents. It’s a nightmare!
So, the chancellor has moved the motion to try and help people move up or get on the property ladder. What he’s done is he has changed mortgages so that they come with a guarantee. Basically, you agree (by signing) to guarantee the bank repayments on your mortgage of x amount by date y, and in return they’ll let you have more money. So:
Bank Man: “I’ll let you borrow £5000 as a normal mortgage, or, i’ll let you borrow £6000 if you can guarantee to pay me back half of it in two years time.”
That’s not exactly how it works, but that’s the principle. This will help people move up the property ladder by giving them more money. As for people trying to get on, the other thing he has created is a community money fund. A house buyers pot if you will, which eager young house buyers can dip into and take money out of.
Now obviously, this isn’t free! They have to pay it back, and do in there mortgage repayments, but the money is not classed as part of there mortgage, so not subject to the banks rules and regulations for borrowing. I’m not sure how he will regulate it, but people can take money from the pot as a cushion for the market. It helps them get a place (this is specifically for people who can’t afford a house AT ALL, and single mums) and then they just have a higher mortgage monthly repayment,
This plan has already come under scrutiny from the opposing party, who say it’s not complete, it leaves people out and can’t withstand complicated situations. The plan doesn’t cover houses over £600,000 because if your aiming for a house that expensive and can’t afford it, it won’t hurt you too much to lower your sights a bit. This is fair, and i can smell a little of the Lib Dem’s in there somewhere, but mainly it’s a conservative policy in this, now called “Conservative lead” government.
The rest of the speech was all just stats and numbers. I would bore you all to death if i went through them, so to sum up….
Tabacco, more expensive, pints and fuel, less expensive. Everything else is increasing in price as planned and houses might be easier to buy. Don’t know yet, still testing this new policy. So overall, i like this Budget. It’s aimed at sensible, driving, pub going non smoking young people like me! 🙂
That Other Guy