The Chancellor presented his first budget since the autumn's spending review, which outlined the Government's cuts programme on Wednesday, 23^rd March 2011.

From the outset we knew that this budget was aimed at reflecting the Government's stated priorities of a strong stable economy, growth and fairness. It provided an opportunity for the Government to outline how it is implementing its fiscal consolidation plans, aimed at eliminating the current deficit and ensuring economic stability.

Times remain challenging for the economy; this was reflected in the Government reducing its forecasts for economic growth from 2.1% to 1.7% for 2011 and from 2.6% to 2.5% for 2012.

This Government sees the private sector as being the catalyst for economic recovery and the budget reflects this, with a number of announcements supporting business investment and entrepreneurship. In the budget, Mr Osborne highlighted his intentions to make the UK the best place in Europe to start, finance and grow a business, whilst setting out a number of proposals to help small businesses.

On the face of it, the budget looks attractive to the majority of individuals with the increase in personal allowance and reductions in motoring costs. However, the sting in the tail this year looks to have come in the form of switching the increases in a number of allowances from RPI to CPI, a generally lower inflationary measure. This has already been labelled a stealth tax by commentators.

The Finance Bill 2011, due to be published on March 31^st 2011, comes hot on the heels of this year’s budget. We already know a lot about what it will contain because the Draft Finance Bill 2011 clauses were published for consultation in December last year.

Over the coming weeks and months, updates and further information on budget proposals, including consultations, will be announced. We will keep you updated on any change in legislation which may affect you.

Please read our 2011 Budget Summary, and our separate detailed analysis of how changes in the Budget may affect you.  If you have any questions or queries arising from this budget, then please do not hesitate to contact us.