Bygone budgets: March 1992

"A budget for the recovery"
Chancellor: Norman Lamont
Government: Conservative

guardian.co.uk, Wednesday March 3 1999 16.02 GMT

Norman Lamont's nemesis turned 50 this week.

Norman Lamont's second budget came just before the general election of 1992 and, inevitably, sought to bolster the Conservatives' popularity with the voters. Labour leader Neil Kinnock dismissed it as "a panic-stricken pre-election sweetener" but the budget cleverly forced Labour into opposing the introduction of a lower rate of income tax, branding them the party of high taxation. The chancellor called it a budget for recovery; the City was depressed by the absence of action against high interest rates.

Income tax
New 20% income tax band introduced on the first £2,000 of taxable income.

Tax allowances
Most personal tax allowances raised in line with inflation but there was no rise in the higher rate threshold.

Car tax
Sales tax on new cars halved to 5%.

Duties
Beer up 1p, wine up 5p, spirits up 28p, 20 cigarettes up 13p.

Betting
Betting duty cut from 8 per cent to 7.75%.