Budget 2014: Top five announcements

The Chancellor has spoken, the opposition leader has blasted the speech, and now the nit-picking begins. But what were the five biggest announcements in today’s Budget? Here’s a guide:

1. The pensions revolution

His plan to abolish the 55 per cent tax rate on those who withdraw more than they should from their pension all seems very generous. (Except it isn’t – the Budget small print reckons it’ll lead to a spending splurge that will send £2bn to the Exchequer). The policy is aimed to address a genuine disappointment that many people experience on retirement when they discover what they can and can’t do with their pension pot. Tax restrictions on how pensioners access pension pots will be lifted and pensioners will not have to buy an annuity. The amount that can be taken out as a lump sum will increase from £18,000 to £30,000. Defined contributions pensions will be made more flexible.