Budget 2003


Everyone Benefited?


Contents





Page 1 - Front Cover


Page 2 - Contents


Page 3 - Introduction


Page 4 - Background information


Page 5 - Primary and secondary research


Page 6 - Results from questionnaires


Page 7 - Results from questionnaires - New Child Trust Fund


Page 8 - Results from questionnaires - Smoke duty - up 8p per packet


Page 9 - Results from questionnaires - Increase Winter fuel payments


Page 10 - Results from questionnaires - Beer duty – up 1 p per pint


Page 11 - Results from questionnaires (continued)


Page 12 - What is a budget?


Page 13 - What is a budget? (continued)


Page 14 - Tax payers money


Page 15 - Conclusions


Page 16 - Recommendations


Page 17 - Evaluation


Page 18 – Primary Research


Page 19 - Copy of letter to companies


Page 20 - Bibliography












































Introduction


In this report, I will assess whether everyone benefited from the 2003 Budget. I will do this by collating results from primary and secondary research to reach a conclusion. To assess whether everyone benefited from last year’s budget I will also use economic theories and past budget reports to assist in making my conclusion.


I will structure this report in sections. The structure is as follows -


- Introduction


- Background


- Research section


- Theory section


- Conclusion


- Evaluation


I will use primary and secondary research to help put together this report. I will complete questionnaires and conduct interviews. To gather secondary research I will use various textbooks, the internet and information received from companies.


When this information is collected, I will conclude and evaluate ways that the budget has affected different range of people and I will offer recommendations to help the government draft the 2004 Budget Report.


I think that the last year’s budget will affect various people differently. I think that people who drink alcohol or wine will be worse off as price of alcohol had gone up by 1p, while a bottle of wine will cost an extra 4 pence. However, I feel that newly born families will benefit because of new baby bonds, which have been introduced which will guarantee money in the bank at the age of 18.


Budget 2003 sets out how the Government is working to achieve this goal, ensuring that the UK can compete effectively in an integrated world economy and benefit when the recovery in global growth begins. The Budget describes how the Government will build on its previous reforms to build a stronger and more enterprising economy, deliver full employment, end child poverty and tackle pensioner poverty, establish world class public services, and meet the global challenge of climate change


Source – Hm-treasury.gov.uk


Background information


The 2003 budget was announced on 17th April 2003 by Mr Gordon Brown, Chancellor of the Exchequer.


The origins of the Budget go back to the Norman period. In those days two departments dealt with finance. Firstly, the Treasury received and paid out money on behalf of the monarch. Secondly, the Exchequer, which received public money, dealt with regulating the King’s accounts.


The other key measures in the 2003 Budget were as follows -


- The starting rate of corporation tax was cut from 10 per cent to zero. This meant that smaller companies had a higher chance of survival.


- Simplify tax and improving access to finance enabling smaller companies to develop and grow.


- Substantial increase in working family’s tax credit which increased by £2.50 a week. This meant more financial support for poorer families.


- A new child tax credit system will provide a secure stream of income for families with children.


- A new child trust fund giving every newborn child £250, ensuring that every child will have money in the bank at the age of 18.


- Pensioners received an extra £100, on top of winter fuel payments.


- The road fuel duties for cars was increased by £1.28 pence, and lower vehicle excise duty for the cleanest vehicles was reduced. This meant that car owners were worse off in general apart from cars with low fuel emissions.


- The main focus point of this year’s budget was the substantial increase in funding for the National Health Service. This meant an increase of an extra £1bn expenditure for the National Health Service next year. This was financed from an increase of 1% in National Insurance Contributions.


- The other increases were taxes on