Most observers were in agreement that the Chancellor’s 2010 budget was more about election posturing in a difficult financial environment, than the launch of a radical new policy framework.

The UK economy still has recessionary blues with abundant unemployment worries, slow consumer spending predicated until at least early 2011 and no major global recovery.

Thus Alistair Darling had his hands tied fiscally, but also knew that the Government must go to the country for an election in a matter of weeks and that measures in the 2010 budget would be minutely inspected by a weary electorate.

So there were no surprises, unless you count Darling’s theatrical announcement that the UK has entered into exchange of tax information agreements with three further countries, including Belize; obviously a dig at the Tories Chairman Lord Ashcroft.

Alcohol and tobacco got the usual uplift, with people wishing to have a smoke seeing duties rise by 1% above inflation from the day of the budget, to 2% above inflation for the next four years. Alcohol rates were lifted 2% above inflation on the day of the announcement until the year 2014 to 2015.

As to the cost of fuel, the 3 pence rise in duty was effectively cancelled and will be phased in gradually between April 2010 and January 20111.

Inheritance tax stayed the same, although when you take in to account the effects of inflation, this was in reality a tax rise. So the ceiling remains the same at £325,000 when no inheritance tax is due, but once over that level, you get hit by 40% on assets.

The Chancellor was feeling benign to those who wanted to get on the property ladder, with first time buyers not having to pay land tax on a flat, or house, valued up to £250,000. Bear in mind that to be deemed a first time buyer, that strictly means what it says. Anyone who has bought a property say outside the country, or has been a party to a property deal in the UK, or overseas, is not a first time buyer. And this incentive will be around for the next couple of years.

Stamp duty is now no longer applicable to properties under £125,000 and the rate for those for those up to £250,000 is 1% of the property’s value. For those buying houses over £1m, then the stamp duty rate rises from 4% to 5%.

Other measures include an extension to the winter fuel payments which will be around for another year at least (effecting around nine million pensioners who qualify for the £250 per person payment, or £400 for those over 80); some child tax credits rises (those families with children aged between one and two); and, the limits which govern ISA tax free savings will rise in line with the Retail Prices Index.

Finally, the Government has also tried to address those people that with poor credit records, who cannot get a basic bank current account. This effects nearly two million people and the problem for the Government, trying to switch everything to bank payments and direct debits, is that with so many people unable to use such payment methods because of no bank account, the old methods will persist.

Thus the Government has stepped in and created a “universal service obligation” meaning that everyone, as long as they meet certain conditions, will be able to take out a bank account.

Further details have yet to be announced by the Government, so watch this space.

Guest Article by Neil Camp