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Who are the winners and losers from the Budget?

By Vicky Shaw, PA Personal Finance Correspondent

The Budget has produced financial “winners” and “losers” who may find themselves better or worse off as a result of Wednesday’s announcements.

Here is a look at how people may have fared:


– Child savers

The Budget has turbo-boosted the maximum annual amounts that families can put away for children into savings accounts.

For the 2020-21 tax year, the annual subscription limit for Junior Isas and Child Trust Funds will be increased from £4,368 to £9,000.

– Some workers

The National Insurance threshold will be increased from £8,632 to £9,500, giving 31 million people a tax cut and saving a typical employee around £104 a year from April.

The National Living Wage will be increased from £8.21 to a record £8.72, meaning a full-time National Living Wage worker’s annual earnings will rise by more than £930 according to the Government. Around four million low paid workers are expected to get a pay increase.

– People and communities struggling to access cash

New laws will aim to ensure that those who rely on cash, including vulnerable groups and local communities across the UK, can access it as and when they need it.

– Broadband customers

The Budget includes a £5 billion investment to roll out faster broadband across the UK.

– Motorists and other road users

Fuel duty is frozen for the 10th year in a row, saving the average car driver a cumulative £1,200 compared to what they would have paid under the pre-2010 fuel duty escalator, according to the Government.

There will also be a £2.5 billion drive to repair 50 million potholes over the next five years. Injury causing crashes involving potholes are three times more likely to impact a cyclist or biker.

– Alcohol drinkers

Duty rates on beer, spirits, wine and cider, are frozen, meaning that a pint of beer is 1p cheaper than it would have been if it had risen with inflation.

– Bookworms

VAT on digital publications – including books, newspapers, magazines and academic journals – will be scrapped from December 1.

Books and newspapers have been exempt from VAT since the introduction of the tax in 1973.


– Smokers

Duty on tobacco will rise by 2% above the rate of retail price inflation.

– Adult savers

The current annual Isa allowance will remain frozen at £20,000 in 2020-21. And the Bank of England interest rate cut on Wednesday means many savers are likely to see their returns shrink further.

– Plastic packaging manufacturers

A new plastic packaging tax will be introduced from April 2022 to incentivise the use of recycled plastic in packaging and help tackle the scourge of plastic in the natural environment.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “Sadly, the plastics tax would effectively be a tax on many goods including food as the use of plastic packaging is currently unavoidable in some circumstances due to food safety legislation and the lack of alternatives.”

– Overseas property investors

From April 1 2021, the Government will introduce a 2% stamp duty surcharge for non-UK residents purchasing homes in England and Northern Ireland.

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