1991 United Kingdom budget
Presented | 19 March 1991 |
---|---|
Parliament | 50th |
Party | Conservative Party |
Chancellor | Norman Lamont |
‹ 1990 1992› |
The 1991 United Kingdom budget (officially titled A budget for business)
With the prospect of the next general election needing to be held in little over a year's time, the governing
Background
As the 1991 budget approached, Lamont was faced with the choice of keeping interest rates high in order to maintain the UK's commitment to the
Overview
One of the key features of the 1991 budget was an increase in VAT from 15% to 17.5% in order to fund the Community Charge Reduction Scheme. The chancellor also raised a tax on the private use of company mobile phones, which were treated as an employee benefit, but removed the tax from
Key points
- VAT raised from 15% to 17.5% to pay for the Community Charge Reduction Scheme
- Profit related pay to be tax free
- Private use of company mobile phones to be taxed as employee benefit
- Child benefit increase by £1 to £9.25 for first child
- Duty on beer raised by 2p a pint
- Duty on wine raised by 9p a bottle
- Duty on spirits raised by 56p a litre
- Duty on 20 cigarettes raised by 16p
Reaction
BBC News notes that commentators were surprised by the increase in VAT.[4]
Neil Kinnock, leader of the Opposition Labour Party, described the 1991 budget as the "biggest climbdown in modern political history", while his Shadow Chancellor, John Smith, suggested the statement had little relevance to the needs of the country.[1][4]
References
- ^ a b c d "Bygone budgets: March 1991". The Guardian. 3 March 1999. Retrieved 19 December 2022.
- ^ "Budget 91 – BBC Two – 19 March 1991". BBC Genome. BBC. Retrieved 19 December 2022.
- . Retrieved 19 December 2022.
- ^ a b c "Budgets 1979 – 1992". BBC News. Retrieved 19 December 2022.