Darling began his budget speech by announcing the introduction of the expected 50% tax rate for individuals earning over £150,000. It is estimated that this will affect approximately 300,000 people.  Many will be relieved as there were rumours that the 50% rate could be decreased to those who earn £100,000 or more.

Darling also revealed that tax relief on pensions would be restricted for those who earn £130,000 or more.

Another big aspect of the budget was Labour’s plan to give basic bank accounts to everyone.  He advised that a bank account was essential in the modern world.

Darling began his budget speech by announcing the introduction of the expected 50% tax rate for individuals earning over £150,000. It is estimated that this will affect approximately 300,000 people.  Many will be relieved as there were rumours that the 50% rate could be decreased to those who earn £100,000 or more.

Darling also revealed that tax relief on pensions would be restricted for those who earn £130,000 or more.

Another big aspect of the budget was Labour’s plan to give basic bank accounts to everyone.  He advised that a bank account was essential in the modern world.

Darling has also decided to double the stamp duty threshold for first time buyers from £125,000 to £250,000 the next couple of years. This ill result in nine out of ten first time buyers will avoid this tax.  The government will be funding this by increasing the tax on properties worth more than £1 million to a massive 5%.

If you’re a car owner, its more bad news I’m afraid as there are plans for a further 3p increase on petrol and diesel. Thankfully, Darling decided instead to stagger this hike. That means fuel duties will rise by 1p a litre in April, 1p in October and the final 1p happening in January. It’s not great news, but its far better than a one-off, instant 3p hike.

Perhaps this hike will go towards the £100 million investment the chancellor has promised to improve local roads, and £285 million to motorways.

Parents of one and two-year olds will be getting a weekly increase of £4 in child tax credit. According to the chancellor, this will come into place from 2012.

If you’re a smoker it will come as no surprise that Darling announced a rise in tobacco duty by 1% above inflation starting from today.  Booze has also become a favoured target with the announcement that the duty on beer, wine and spirits will rise by 2% starting on Sunday.  And if you’re a cider drinker…look away now.  The duty on cider is going up 10% above inflation from midnight on Sunday.

Many predicted that VAT would increase from 17.5% to 20% but there was no mention on this.  Darling was also quiet on National Insurance rates, income tax and capital gains tax.  Many predict that these will all be raised should the Labour Party remain in power after the next election.

Darling has also decided to double the stamp duty threshold for first time buyers from £125,000 to £250,000 the next couple of years. This ill result in nine out of ten first time buyers will avoid this tax.  The government will be funding this by increasing the tax on properties worth more than £1 million to a massive 5%.

If you’re a car owner, its more bad news I’m afraid as there are plans for a further 3p increase on petrol and diesel. Thankfully, Darling decided instead to stagger this hike. That means fuel duties will rise by 1p a litre in April, 1p in October and the final 1p happening in January. It’s not great news, but its far better than a one-off, instant 3p hike.  Perhaps this hike will go towards the £100 million investment the chancellor has promised to improve local roads, and £285 million to motorways.

Parents of one and two-year olds will be getting a weekly increase of £4 in child tax credit. According to the chancellor, this will come into place from 2012.

If you’re a smoker it will come as no surprise that Darling announced a rise in tobacco duty by 1% above inflation starting from today.  Booze has also become a favoured target with the announcement that the duty on beer, wine and spirits will rise by 2% starting on Sunday.  And if you’re a cider drinker…look away now.  The duty on cider is going up 10% above inflation from midnight on Sunday.

Many predicted that VAT would increase from 17.5% to 20% but there was no mention on this.  Darling was also quiet on National Insurance rates, income tax and capital gains tax.  Many predict that these will all be raised should the Labour Party remain in power after the next election.

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Taking out a loan is a very big decision and can be very costly.  The current base rate of interest in the UK is just 0.5%,however banks are charging the highest interest rates on personal loans since 2001.  Its important that you shop around.  If you do your research you can still find some very good deals. The right loan for you will depend on the strength of your credit rating, the amount of money you require and the length of time it’s going to take you to pay it back.

Lets look at a sneaky way of getting a loan if you are wanting to borrow under £2,000.  One of the best ways to borrow less than £2,000 is to locate a current account which comes with an interest-free overdraft. One of the best current accounts on the market is The Alliance & Leicester Premier Account.  Alliance and Leicester are currently offering a 0% overdraft of up to £2,000 for a year. They are also offering bonuses such as free annual European travel insurance and £100 cash-back.

Another deal comes from Santander which offers a similar 0% overdraft for the first year. Depending on your circumstances, it will also match your previous overdraft up to £5,000.  So If you need to borrow more than £2,000, this may be a better option. You’ll need to deposit at least £1k per month. And after the first year, your overdraft rate will jump to 12.9% APR.  An overdraft with your bank can work out beneficial but it’s definitely not a long-term solution.

Another interest-free option you might want to consider is a 0% credit card. This card will give you 0% interest on all spending for a period of time. This makes it an ideal solution for those who face urgent expenses, but don’t have access to the money.

One of the best deals on the market is the Tesco Credit Card.  The Tesco card currently offers you 12 months of interest-free spending. After the 12 months are over the APR climbs to 16.9%, so you need to ensure the balance is paid off before the 12 month period ends.
You should take into account that these cards are only available to people with a very good credit rating. If you want to view your UK credit report, you can sign up to a trial with Experian or Equifax.  Both usually offer free trails; just make sure you unsubscribe within 30 days or you will be charged a monthly rate.

If your borrowing needs exceed £5,000, a personal loan may be your best option.  Nationwide are offering The Existing Customer Personal Loan at a rate of 7.6% APR on loans of between £7,500 and £15,000.  This loan is only currently available those those that hold a Nationwide current account.

If you’re not a Nationwide account holder, you may want to consider Alliance & Leicester. They offer loans to new and existing customers, and a typical APR of 7.8% on loans between £7,500 and £15,000.

If you’ve been turned down for all the loans described in this article you may be tempted to look at alternative options such as payday loans. I would strongly advise anyone not to take one of these loans out. These “Payday loans” tend to get people further into a spiral of huge interest payments and rising levels of debt. Instead of making the situation better, they usually make debt problems far worse. If you are all out of options please contact your local Citizens Advice Bureau instead of turning to payday loans or loan-sharks.