HE CITIZEN
The Modern Man C2 special report
THE CITIZEN
Weekly newspaper of City of London School www.CLSB.org.uk Special Edition Wednesday 18 March 2015
Budget 2015
Taxes on savings slashed Income tax threshold raised Growth predicted at 2.5% Isaac Gruber 3H
Election season has begun. Today, George Osborne unveiled the Conservative party’s budget for 2015. It was extremely political, with many soundbites and giveaways designed to improve the party’s electoral chances. The headline announcement was a slash of income tax on savings, 95% of people will now not pay tax on their savings. This was described pithily as ‘tax-free banking.’ Other headlines are the introduction of an new ISA (individual saving account) where the government sets aside £50 for every £200 saved. This is designed to help first-time buyers who need assistance saving for a deposit. Osborne also said that austerity would be called off before the end of the next parliament, saying that ‘the hard work and sacrifice of the UK people has paid off.’ ‘The sun is starting to shine -and we are fixing the roof’ quipped Osborne after announcing that Britain’s debt as a proportion of GDP would be falling. The Tories will say that this has been achieved as a result of decreasing borrowing from £150bn in 2010, when they took the reigns, to £90bn. However, he countered Labour calls that he would reduce the state to 1930s level spending, think The Road to Wigan Pier, by projecting a surplus in 2019 of £5bn. This is a sharp contrast from his Autumn statement, where he projected a £23bn surplus. Having a smaller surplus in the future means that there is more money to spend now, which the Conservative’s will use to ease austerity. This is a highly political move, designed to make the Tories appear less nasty. Another tactic deployed against Labour was the cut of the lifetime allowance from £1.25 million to £1 million. Originally, this was part of a Labour plan to fund their proposed reduction in tuition fees. Yet Osborne re-appropriated it, leaving Balls and Miliband scrambling to find an alternative way to fund the reduction.
Finally, he pledged to crack down on tax avoidance and to raise £3.1bn doing so. Miliband had pledged to be extremely tough on tis but Osborne has negated the advantage by announcing these similar measures. Despite repeatedly claiming there would be no ‘giveaways’, there were several ‘giveaways.’ Aside from the tax exemptions and funding aforementioned, he also increased the personal tax allowance, an exemption from income tax, from £10,600 to £10,800 this year, and £11,000 the year after. This was originally a Lib-Dem policy the Conservatives have claimed credit for. In successive budgets, they have raised it from £6,475 to £11,000. Some argue that this doesn’t benefit the really poorest in society, as they were already exempt from income tax. Either way, this could lure lower-income voters to the Conservatives. Numbers were frequently bandied about to support Osborne’s ‘long-term plan.’ Inflation was forecast at 0.2% for the next three years. While not as low as Germany and other Eurozone countries, it is still well below the Bank of England’s 2% target. Growth is better news however. In 2015 it is expected to be 2.5%, up from the 2.4% projected in the Autumn statement. In 2016 too, it was predicted to be 2.3%, up from an earlier figure of 2.2%. Many Tories believe that this is the stat that will win them the election, they believe it will convince voters that the economy is doing well. North Sea oil will receive £1.3bn from tax cuts, including a reduction of the Petroleum revenue tax from 50% to 35%. This was a result of rapidly falling oil prices. Osborne also made the point that this was only possible because the UK had remained together. Osborne made his case for a ‘comeback’ Britain. On May 7th, the voters will decide if they agree. More budget analysis on page 4
What a spectacle! Solar eclipse this Friday Zak Lakota-Baldwin 5C
Some may be declaring it the beginning of the end times, but the CLS Science Department has embraced the upcoming solar eclipse in the only way they know how – with a ten minute organised viewing, complete with designated spectator areas for different year groups and a teacher on hand to explain the cosmic phenomenon. Oh, and 500 pairs of special UV-resistant safety spectacles, obviously. The assembly announcement was met with a mix of mild bemusement at the elaborate set-up of the whole affair, and more importantly delight at the prospect of missing ten minutes of Friday morning lessons. But alas, it wasn’t meant to be. The spectacle shipment, fresh out of the warehouse of a dubious supplier in Tel-Aviv, has mysteriously disappeared, in what commentators are already calling the most troubling eyewear-related theft in recent
memory. With all attention there focused on the Israeli election, it would have been the perfect time for a spectacle thief to pull off such a daring
heist. Foul play hasn’t been ruled out yet, and there are rumours of a largescale bribery investigation soon to be launched, but it is currently believed that the hijackers operated without
any inside help. This debacle comes after the previous gaffe from the physics department, in which they organised a trip to CERN but failed to actually take any of the boys to see the particle accelerators. Now that the safety glasses are no longer an option, head of science Mr. Jones has warned emphatically against going out to look at the eclipse without the suitable eye protection. Students are advised to under no circumstances look directly at the sun, not even through dark glasses or binoculars. Some have proposed looking through a phone camera, which admittedly won’t do any damage to your retina, but the danger there lies in accidentally glancing past your phone to try and nail the perfect shot. The Royal College of Optometrists has expressed fears that people will be putting themselves at risk of blindness while attempting to take eclipse selfies – so it would be wisest Continued on page 14
IN THE NEWS Is there anybody out there?
Billions of planets in our galaxy found to be in “habitable zone” where water, and therefore life, could exist. Page 10
Crimea a year on Crimeans celebrate a year since “officially” becoming part of Russia once more. Page 9
Netanyahu stays
Early results show Likud firmly in lead, but will it be for the best? Full coverage of the Israeli elections on page7
CLS to enrich uranium?
Plus: Assange to visit School. Find out this and more in the insider’s lowdown of City life: The Wittizen page 15
007’s new car
Spectre, to be released this October, will see Bond (Daniel Craig), driving the new Aston Martin DB10. More supercars on page 18
Never too old...
A woman has gone skydiving in Cape Town to celebrate her 100th birthday. Browsers, however, do have to retire. Page 13