While many of the headlines generated by Chancellor Darling’s Budget of 22 April have focused on its bleak economic background, cuts in public spending and the new 50% rate of income tax for the highest earners, one or two areas have not as yet received the attention they deserve.

The 50% tax rate for people earning over £150,000-a-year affects barely 1% of the population and the Budget contained several policies of much more immediate importance to the everyday lives of many more people.

One area of focus was the housing market, which saw a range of measures designed to stimulate activity. Given that the property market is driven by transactions that take place at the bottom of the ladder, particularly among first-time buyers, an extension until the end of the year for the stamp duty holiday on properties sold for under £175,000 is welcome.

In addition, in a bid to increase lending the government is to introduce a scheme that guarantees securities backed by mortgages, as well as giving an extra £80m to the HomeBuy Direct shared equity mortgage scheme. It is also to give an extra £500 million in financial support to help re-start those building projects that stalled because of the credit crunch and recession.

Whilst these measures are unlikely to make a particular difference on their own, it is hoped that together they may add to the increasing momentum in housing market activity that many observers have been reporting over the last couple of months.

In view of the historically low interest rates we are experiencing at the moment, the Budget sought to give a boost to savers by raising the tax-exempt savings limits for Individual Savings Accounts (ISAs), by £3,000 to £10,200. This is being introduced in October 2009 for people aged 50 or over, and will be available to everyone else in April 2010.

Although the 2009 Budget will be remembered for other reasons, it is such comparatively minor steps that will make the biggest immediate difference to everyday lives. There is no doubt that Budget 2009 will go down in history as the moment when the Government started the process of replenishing its coffers by raising taxes and closing further loopholes.

But it also raised issues that affect many of us, concerning property, savings, tax-planning and more. If you are looking for advice on any of these issues in the light of the Budget, please do not hesitate to call us on 01491 572138.