Introduction

With polling day just over seven weeks away, Mr Osborne's sixth Budget was always going to be heavily laced with politics. Some of the proposals the Chancellor announced may not survive to become legislation depending on the result of the election.

This uncertainty did not stop Mr Osborne revealing a number of new measures. The proposal to allow existing pension annuity owners to sell their income in return for a lump sum will create flexibility for those excluded from April's radical reforms. However, those who have not yet retired were on the receiving end of bad news in this Budget: a further reduction in the lifetime allowance, cutting it to the £1 million that the Shadow Chancellor had proposed only last month.

Savers were offered a new personal savings allowance (worth up to £200 a year) and more flexibility and investment options for their individual savings accounts (ISAs), all due after the election. There were also changes proposed to venture capital trusts (VCTs) and enterprise investment schemes (EISs), some of which had not been expected.

The planned abolition of the annual tax return will be welcome news for many, but it will take time to become a reality and it is unclear whether the reform will be accompanied by a change to the timing of tax payments.