March 1993 United Kingdom budget: Difference between revisions

The March 1993 budget was broadly neutral for the year ahead, but the chancellor introduced a number of tax rises that would take effect in successive years. Chief amongst these was his decision to raise VAT on domestic energy bills, which would be phased in from April 1994 when VAT of 8% would be levied. This was scheduled to increase to 17.5% from April 1995. Increases in a number of income-related benefits were also announced as a way to offset the extra cost. Lamont emphasized the positive impact he believed raising VAT on fuel would have for the environment, the first time a chancellor had cited the environment as a reason for increasing taxes. Minor changes were made to the 20p rate of income tax, but the two other tax bands remained intact, effectively making them tax rises. The stamp duty threshold on the purchase of property was raised, reducing the cost of buying a house valued at between £30,000 and £60,000 by up to £600.<ref name=Guardian/><ref name=BBC>{{Cite web|url=https://www.bbc.co.uk/news/special/politics97/budget97/background/bud1993_95.shtml|title=BBCBudgets Budget1993 97- 1995|website=www.bbc.co.ukBBC News|accessdate=16 December 2022}}</ref>