Budget 2015: George Osborne’s election gift for young and old alike

Chancellor George Osborne used the final Budget of this government to give sweeteners to both younger and older voters yesterday.

In an unexpected move, he introduced a new Help-To-Buy ISA, giving first-time buyers up to £3,000. “For every £200 [first-time buyers] save for their deposit, the government will top it up with £50 more,” Osborne said. This will be applied to savings up to £12,000, meaning buyers will have access to a total of £15,000.

For the critical older vote, there will be a new Personal Savings Allowance making the first £1,000 of savings income tax-free for basic rate taxpayers.

The pensions revolution also continued, with the chancellor outlining his plans for over-55s to be able to cash in annuities they already have.

Yet there was also a reduction in the pensions lifetime allowance, bringing it down to £1m from £1.25m.

The Lib Dems emphasised the implementation of one of their key policies of raising the personal income tax allowance. It will now be £10,800 from April 2016, and £11,000 a year later, giving the typical basic rate tax payer an extra £905 a year over the parliament.

Yesterday, Osborne struck a notably optimistic tone. With the election on the horizon, he declared: “The sun is starting to shine and we are fixing the roof.” Yet Labour leader Ed Miliband dismissed the chancellor’s positivity saying: “This is a Budget that people will not believe from a government who are not on their side.”