The March 1993 United Kingdom budget (officially titled A budget for sustained recovery and a budget for jobs)[1] was delivered by Norman Lamont, the Chancellor of the Exchequer, to the House of Commons on 16 March 1993.[2] It was the third and final budget to be presented by Lamont during his tenure as chancellor, and the final spring budget to be outlined before the Conservatives unified their tax and spending plans into one budget statement.
 | |
| Presented | 16 March 1993 |
|---|---|
| Parliament | 51st |
| Party | Conservative Party |
| Chancellor | Norman Lamont |
|
‹ 1992 | |
Lamont introduced a series of phased tax increases, including announcing a VAT levy of 8% on domestic fuel from 1 April 1994, which would be raised to 17.5% the next year, as well as making changes to income tax and raising the stamp duty threshold. March 1993 also marks the first occasion on which a chancellor cited the environment as a reason for raising taxes, but this failed to convince green campaigners the tax raises were justified. John Smith, the leader of the Opposition Labour Party, dismissed the budget as "a shameful budget from a cynical government that has broken its election promises". Prime Minister John Major described it as "the right budget, at the right time, from the right chancellor" before replacing Lamont a few weeks later with Kenneth Clarke.
Overview
Key points
- 20% rate of income tax extended by £500 to £2,500
- 25% basic rate of income tax frozen
- 40% higher income tax rate frozen at £23,700
- Personal tax allowances frozen
- VAT on domestic fuel to be charged at 8% from April 1994, rising to 17.5% from April 1995
- Stamp duty threshold increased
- Mortgage relief reduced to 20%
- Excise duty on petrol increased by 3%
- Duty on packet of 20 cigarettes increased above rate of inflation
- Duty on beer increased above rate of inflation
- Excise duty increase excludes Scotch whisky
References
- ^ "Bygone budgets: March 1993". The Guardian. 3 March 1999. Retrieved 15 December 2022.
- ^ "Budget 93 – BBC Two – 16 March 1993". BBC Genome. BBC. Retrieved 15 December 2022.