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Lansons Budget 2012 Analysis

As George Osborne emerges from the dark waters of the Treasury to give his third Budget, he does so with an air of optimism not seen in his two previous statements. The global economy has been taken off life support and the euro zone crisis is less severe than many feared. Osborne was able to reveal marginally better than expected growth forecasts at a time when the Office for Budget Responsibility are revising down their forecast for the euro zone.

Against this more favourable canvass Osborne has tried to paint a picture of how we will earn our way in the world. There was a plethora of supply side measures designed to stimulate growth, ranging from a ‘Downton Abbey tax break’, to a possible U-turn on airport expansion in the South East, through to an extra 1% cut in corporation tax. The eye catching announcement, the reduction in top rate income tax to 45%, was intended to send a clear signal that Britain is competitive again and open for business. Herein lies the first of two major and related gambles in this Budget.

Please find our full Budget Analysis here.