Students and The Budget

Chancellor of the Exchequer, Alistair Darling has delivered his last Budget before the general election in May. He announced measures to cut spending and boost the economy following the recession.

But what does it mean for students?

There are several key points affecting students in this year’s budget:

· Tax rises on alcohol: From midnight on Sunday, cider duty will rise by 10% above inflation. This means the price of a bottle of cider will increase by 9p and a litre by 5p. The price of a pint of beer will go up by 2p, a bottle of wine will cost 10p more, while the cost of a bottle of spirits will rise by 36p.

· Smokers are not so badly affected. Tax on tobacco will increase to 1%, increasing by 2% each year until 2014.

· Universities are set to benefit. £270 million will be made available to universities to fund 20,000 extra places and improve other services.

· By January 2011, the price of fuel will have increased by 3%. It was thought previously the increase would be introduced next month.

· Darling “guaranteed” that any 18-24 year olds that are out of work would be offered work or training within six months of becoming unemployed.

Reaction

Darling says the price hike on alcohol will help to reduce binge drinking, but industry experts predict devastating effects for cider producers. Henry Chevallier, chair of the National Association of Cider Makers, said: ”This dramatic increase could well reverse the growth we have generated in recent years.”

Facebook groups protesting about the tax added to cider have already been set up. ‘The Wurzels – I am a Cider Drinker for UK no.1 Cider tax protest song’ has 397 members. James Maclean said: “Spread the word people, invite everyone and anyone. To paraphase Anne Boleyn, ‘let them drink booze!’” Professor Stephen Glaister of the RAC Foundation said of the fuel duty increase: “at least there is some relief for cash-strapped motorists.” AA president Edmund King added: “Perhaps the thought of 32 million fuming drivers and voters influenced Government thinking.”

NUS President Wes Streeting said of the university funding: “We await the full costings of these proposals and will scrutinise them carefully to ensure promises are kept and that the money is provided to deliver additional places.”

The Budget has attracted criticism from Shadow chancellor George Osborne, labelling it “empty”, while the Lib Dems say both Labour and the Tories are ‘in denial” about the amount of spending cuts required for the country.

To see how the 2010 Budget will affect your lifestyle, go to the BBC Budget Calculator: http://news.bbc.co.uk/1/hi/business/8582847.stm