The Budget and Falmouth: The Good, The Bad & The Ugly

The Chancellor has just announced his “tough but fair” emergency budget. There’s good news and bad, but how will it affect you and Falmouth? Here are some of the main points:

• Possibly the biggest change is VAT. From the 4th January next year it’ll rise from 17.5% to 20%.  Children’s clothes and magazines will remain exempt.   

• If you’re planning on setting up a new business then you’re in luck. Businesses in Cornwall will be eligible for a £5000 relief from National Insurance contributions for their first 10 employees.   

• Good news for holiday let owners. The previous government's repeal on special tax rules on furnished holiday lets has been scrapped.   

• State pensions will be linked to earnings from next year. The pension is guaranteed to rise with earnings or by 2.5%, whichever is greater.   

• Lower income families will get more Child Tax Credit. This will raise by £150 per child above the rate of inflation.  

• Business rates can be a significant cost, particularly for smaller businesses. The Government has already legislated to freeze payments of certain significant backdated business rates bills until April 2011, including for businesses in ports. Hopefully this will include Falmouth.  

• Public sector workers will see a two year pay freeze. This will not-doubt be bad for the region as the public sector is one of the largest employers.  

• Low spending councils will get help to freeze Council tax rates for a year from April 2011. Whether Cornwall Council will get any help is yet to be announced.  

• Good news for all you cider drinkers, the planed rise in duty has been scrapped. Duty on cigarettes and alcohol will remain the same.  

What do you think? Are you happy with the budget or does it make your blood boil? Could the Chancellor have done more to help the South West and Cornwall? Will the VAT increase cause a drop in tourism? Have you say in the comments.