UK budget 2010: What George Osborne's budget means to me

 The 22nd June 2010 saw the new British Coalition Government present its first budget to the nation. A little after noon George Osborne the Chancellor of the Exchequer got to his feet and began to list the first of many sweeping changes aimed at reducing the UK's terrible debt.

It was expected that this budget would be a hard one and would involve everyone losing something, financially that it is. Unlike Tory governments of the past this new government stated that the cuts would be harsh but fair.

In about an hour a table of changes was listed.

This is what this budget means to me, my husband and my town, and my thoughts on the changes.

Hot weather and England's last chance in the World Cup groups has meant that this hub has been delayed. England, having fought well and secured a win, have left many English people upbeat today. The budget on 22nd June, yesterday, was not as bad as many thought it would be. However, this is just the start of many such budgets and things can only get worse.

Hubby, my town and I

The first announcement which hit home was an increase in the retirement age. As both hubby and I are not too far away from this time of life, this did not sound favourable. I have been reassured that we will just miss these changes and I can only hope. The government plan to accelerate the increase in the age of retirement so that changes will occur in 2016. This does mean though that people only a little younger than us will be affected. The exact timeline is unclear right now.

The Council Tax we pay is to be frozen, for a year, I think. On the surface this sounds good. Since the council tax came into being it has increased each year and is bordering on ridiculous now. However freezing the tax means that inevitably local governments will have to cut jobs and services. In a town like mine such employment is vital. Without it we may return to the high level;s of unemployment that we have suffered in the past.

Being a relatively poor town, cuts in services will be a problem also. In affluent areas of the country people can afford to pay for such services themselves.

Public Sector workers are to have their pay frozen for two years. This will only affect those earning more than £21,000. I work for the NHS but earn below this. However, although my pay will not be frozen, the pay increase for each of the next two years will be limited to £250 a year. Hardly rich pickings. Still at least it is not a negative.

Having paid into two different public sector pensions down the years, it seems likely these will be hit.

The NHS is already facing massive job cuts and streamlining its services. There are already far too many chief and far too few Indians but as those at the top will undoubtedly be deciding where the axe falls, the balance will probably not be redressed.

Hubby is still a smoker and for once the budget did not increase the price of smoking wares and alcohol. Perhaps the Chancellor decided that as the tough times bite we will all need such minor pleasures.

Vat is set to rise from 171/2% to 20% in January 2011. No doubt there will be a run on purchases of white goods and the like before next year. The actual increase on each item will not be significant but overall these increases will add up.

As both Hubby and I only work part-time these days the increase in the personal allowance for taxation, from April 2011, will improve our lot, a little. Of course with planned public sector cuts I may not have a job next April.

Retirement pensions are now to be linked to earnings again but not until next April. As we will soon be pensioners, all being well, this could affect both Hubby and I. However, if the age of retirement keeps increasing it may never do so.

Final thoughts

More changes are planned for October 2010. With such debt the UK has had to take drastic measures. For Hubby and I, at the moment, none have hit us too hard. However, with public sector reviews this could change. It may be that interest rates will have to increase this year which will hit us and millions of other UK residents hard. We have no children but those who do will have been hit by the budget.

I am left thinking that, perhaps, the Liberal party element of this coalition government has helped refrain the Tories from Draconian measures. There is nothing to say that such measures will not follow. Neither may the Liberals be always able to stay the execution.