The biggest macro implication of the Budget was the chancellor’s decision to ease the squeeze on public spending, a mostly political move to neutralise Labour’s best attack line on the Conservative party — that it doesn’t care about ordinary people.
But there are of course some interesting micro policies, not least the announcement of a “Help to Buy ISA” targeting people saving to buy their first home. The diagram below outlines how the policy is supposed to work. Savers can deposit up to £200 per month into a Help to Buy ISA, which the government will match with 25p for every £1 up to the total government contribution of £3,000. In other words, savers can deposit up to £12,000 and earn a maximum “bonus” taking it up to £15,000. (This doesn’t take into account any possible interest earned on the amount saved.)