Bygone budgets: March 1985

Chancellor: Nigel Lawson
Government: Conservative

Chancellor Nigel Lawson (b&w)
The chancellor had expressed a desire to cut taxes but in the end did so less than he hoped, later professing himself "boxed in" by inflation, unemployment and, specifically, the year-long national coal strike. Conservative MPs were worried about the huge extra levy on employers which the national insurance charges threatened. Labour leader Neil Kinnock asked how the chancellor could afford £2000m to fight the miners but not to fight unemployment.

Income tax personal allowances
Increased by up to 10% - twice the rate required to keep pace with inflation.

National insurance contributions
Employers' contribution ceiling make all earnings subject to the 10.45% rather than just paying up to £265 a week.

Road tax
Increased from £90 to £100.

Stamp duty
Modernised, with the abolition of 15 different levies, representing 40% of documents subject to duty.

Duties
Beer up 1.5p, wine up 6p, spirits up 10p, 20 cigarettes up 6p, petrol up 4p.


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Bygone budgets: March 1985

This article was first published on guardian.co.uk at 15.44 GMT on Wednesday March 03 1999. It was last updated at 15.44 GMT on Wednesday February 14 2001.

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