The 1986 United Kingdom budget was delivered by Nigel Lawson, the Chancellor of the Exchequer, to the House of Commons on 18 March 1986. It was the third budget to be presented by Lawson, and saw the start of a programme of tax cuts initiated under the leadership of Conservative Prime Minister Margaret Thatcher. Lawson set the theme of his budget as "popular capitalism" and stated his wish to turn a nation of homeowners into a nation of shareholders. As well as a cut in the basic rate of income tax from 30% to 29%, there were other changes to taxation. 1986 was also the year the chancellor announced the launch of the Personal equity plan (PEP), a tax-exempt plan that would allow ordinary members of the public to invest up to £2,400 a year in equities. Labour leader Neil Kinnock, the leader of the Opposition, dismissed the budget as a "bits and pieces budget" that promised "jam tomorrow".
Lawson's idea with "popular capitalism" was to create a society "in which more and more men and women have a direct personal stake in British business and industry", building on the already growing trend of employee share schemes, as well as the government's programme of privatisation.[1]
To this end, he began a programme of tax cuts and investment reforms designed to allow people to keep more of what they were earning, and encourage them to invest their money. He announced the creation of the personal equity plan (PEP) which would allow members of the public to "shelter" from tax of up to £2,400 per year in stocks. The basic rate of income tax was reduced from 30% to 29%, the first cut in income tax since 1979, while other tax changes were also announced. Capital Transfer Tax was renamed Inheritance Tax, and the tax levied on gifts given during a deceased person's lifetime was abolished (unless the gift was given in their final year of life). Tax relief for charity donations made by companies or individuals, described as "Give as you Earn", was announced. Duty on a packet of 20 cigarettes was increased by 11p, while duty on petrol was raised by 7.5p per gallon.[2][3]
In his speech Lawson said that social security changes being brought in that year, principally the replacement of Family Income Supplement by Family Credit, world save £120 million in the 1987–88 financial year.[1]
Reactionedit
In his response to the budget, Opposition Labour Party leader Neil Kinnock described it as a "bits and pieces budget" that promised "jam tomorrow".[2]
The 1986 budget saw the first reduction in income tax since 1979. Lawson would further reduce the basic rate of income tax in his subsequent budgets of 1987 and 1988 cutting it to 25% by 1988.[2][3]
^ abLawson, Nigel (18 March 1986). "Budget Statement". Hansard. UK Parliament. Retrieved 7 April 2023 – via Margaret Thatcher Foundation.
^ abc"Bygone budgets: March 1986". The Guardian. 3 March 1999. Retrieved 20 December 2022.
^ ab"Budgets 1979 – 1992". BBC News. Retrieved 20 December 2022.
December 15, 2023
1986, united, kingdom, budget, delivered, nigel, lawson, chancellor, exchequer, house, commons, march, 1986, third, budget, presented, lawson, start, programme, cuts, initiated, under, leadership, conservative, prime, minister, margaret, thatcher, lawson, them. The 1986 United Kingdom budget was delivered by Nigel Lawson the Chancellor of the Exchequer to the House of Commons on 18 March 1986 It was the third budget to be presented by Lawson and saw the start of a programme of tax cuts initiated under the leadership of Conservative Prime Minister Margaret Thatcher Lawson set the theme of his budget as popular capitalism and stated his wish to turn a nation of homeowners into a nation of shareholders As well as a cut in the basic rate of income tax from 30 to 29 there were other changes to taxation 1986 was also the year the chancellor announced the launch of the Personal equity plan PEP a tax exempt plan that would allow ordinary members of the public to invest up to 2 400 a year in equities Labour leader Neil Kinnock the leader of the Opposition dismissed the budget as a bits and pieces budget that promised jam tomorrow 1986 1986 United Kingdom budgetPresented18 March 1986Parliament49thPartyConservative PartyChancellorNigel Lawson 19851987 Contents 1 Overview 2 Reaction 3 See also 4 ReferencesOverview editLawson s idea with popular capitalism was to create a society in which more and more men and women have a direct personal stake in British business and industry building on the already growing trend of employee share schemes as well as the government s programme of privatisation 1 To this end he began a programme of tax cuts and investment reforms designed to allow people to keep more of what they were earning and encourage them to invest their money He announced the creation of the personal equity plan PEP which would allow members of the public to shelter from tax of up to 2 400 per year in stocks The basic rate of income tax was reduced from 30 to 29 the first cut in income tax since 1979 while other tax changes were also announced Capital Transfer Tax was renamed Inheritance Tax and the tax levied on gifts given during a deceased person s lifetime was abolished unless the gift was given in their final year of life Tax relief for charity donations made by companies or individuals described as Give as you Earn was announced Duty on a packet of 20 cigarettes was increased by 11p while duty on petrol was raised by 7 5p per gallon 2 3 In his speech Lawson said that social security changes being brought in that year principally the replacement of Family Income Supplement by Family Credit world save 120 million in the 1987 88 financial year 1 Reaction editIn his response to the budget Opposition Labour Party leader Neil Kinnock described it as a bits and pieces budget that promised jam tomorrow 2 The 1986 budget saw the first reduction in income tax since 1979 Lawson would further reduce the basic rate of income tax in his subsequent budgets of 1987 and 1988 cutting it to 25 by 1988 2 3 See also editLawson Boom MonetarismReferences edit a b Lawson Nigel 18 March 1986 Budget Statement Hansard UK Parliament Retrieved 7 April 2023 via Margaret Thatcher Foundation a b c Bygone budgets March 1986 The Guardian 3 March 1999 Retrieved 20 December 2022 a b Budgets 1979 1992 BBC News Retrieved 20 December 2022 Retrieved from https en wikipedia org w index php title 1986 United Kingdom budget amp oldid 1187022307, wikipedia, wiki, book, books, library,
