Coalition Promises v What They Delivered

A start-of-term promise can be a long way from an end-of-term reality but how has the coalition fared?

In the bright and sunny days of the shiny new coalition David Cameron and Nick Clegg wrote down their pledges in a Coalition Programme for Government.

Soon after came the 2010 Emergency Budget in which George Osborne said the deficit would have been eliminated by... now.

On Wednesday, George Osborne will deliver his last Budget before the General Election - but has he delivered for the country?

With the help of partner Nimesh Shah of chartered accountants Blick Rothenberg, Sky News examines what the Chancellor has had to offer.

Deficit reduction forecast - and the reality

:: Getting the deficit down

What they said: "We will significantly accelerate the reduction of the structural deficit over the course of a Parliament, with the main burden of deficit reduction borne by reduced spending rather than increased taxes."

What they delivered: In the 2010 Emergency Budget George Osborne said the deficit would be eliminated by 2014/15. It is what the 2010 Office for Budget Responsibility figures showed.

It did not turn out that way.

The country is borrowing less (forecast to be £91bn for 2014/15). The Government says the deficit has been slashed by a third - but that is a long way from eliminated and far less rapid than had been promised.

:: Tax cuts for hard-working families

What they said: "We will further increase the personal allowance to £10,000, making real-terms steps each year towards meeting this as a longer-term policy objective. We will prioritise this over other tax cuts, including cuts to Inheritance Tax."

What they delivered: This was one for the Lib Dems and Nick Clegg has claimed he had to force the Tories to come good on delivering the personal allowance increases.

The coalition has exceeded its pledge here, increasing the allowance to £10,000 in 2014/15 and all indications will suggest Mr Osborne will increase it to £11,000 on Wednesday.

However, it should be noted more people have been dragged into paying tax at 40% since the coalition came to power.

Savers can do what they want with their pensions pots

:: Savers will get power over their pensions

What they said: "We will explore the potential to give people greater flexibility in accessing part of their personal pension fund early."

What they delivered: Budget 2014 saw George Osborne allow savers to get hold of their pension funds on retirement rather than forcing them to buy an annuity - annual payment plan.

He also gave pensioners greater freedoms to pass their pension funds down to future generations.

On Wednesday he intends to finish the job by allowing those with annuities to effectively cash them in.

Will you take this £212?

:: Get married, get a tax allowance

What they said: "We will also ensure that provision is made for Liberal Democrat MPs to abstain on budget resolutions to introduce transferable tax allowances for married couple without prejudice to the coalition agreement."

What they delivered: Tories delivered on their word to the Lib Dems and on a married couple allowance. It's worth £212 a year, leading many to comment it was hardly an incentive to tie the knot.

The allowance, which applies only to those not on the higher rate, comes into effect in April.

Capital Gains Tax: up, up, up

:: No gain without pain - Capital Gains Tax increase

What they said: "We will seek ways of taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities."

What they delivered: They were straight on this in the 2010 Emergency Budget when they increased the capital gains tax rate for higher and additional rate payers to 28%.

The level for basic rate taxpayers remained at 18%.

:: Untangle corporation tax system

What they said: "We will reform the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates. Our aim is to create the most competitive corporate tax regime in the G20, while protecting manufacturing industry."

What they delivered: From 1 April 2015 there will be a single rate of corporation tax at 20%.

But the tax rules have significantly increased since the coalition has been in power - especially tax avoidance rules - and the UK is now believed to have one of the longest tax codes in the world.

Naming and shaming tax fugitives

:: We will be coming for the tax dodgers

What they said: "We will make every effort to tackle tax avoidance, including detailed development of Liberal Democrat proposals."

What they delivered: A high-agenda policy, which has seen a number of measures introduced - most symbolically "Google Tax" or the Diverted Profits Tax (cash earned here, taxed elsewhere), which the Government estimates will bring in £360m a year by 2017/18.

HMRC has also taken to "naming and shaming" tax defaulters.

HSBC chief executive Stuart Gulliver is a non-dom

:: And we will hit the Non-doms

What they said: "We will review the taxation of non-domiciled individuals."

What they delivered:  A bit more than they promised, to the annoyance of many.

The review was immediate and the annual levy paid by those who live in the UK but choose not to be taxed on their income here increased from £30,000 to £50,000.

Despite Mr Osborne's promise there would be no further changes, in the 2014 Autumn Statement the amount was increased to £60,000 for non-domiciles who have lived in the UK for seven out of the last nine years and £90,000 for those who have lived here 17 out of the last 20 years.

Non domiciles pay nothing for the first seven years of living in the UK.

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