Budget predictions

Book a Free Consultation
Or call us on 01604 660661
Chancellor looking to budget for extra spendingWith the Budget fast approaching and Theresa May signalling an end to austerity, speculation is mounting as to how Philip Hammond could raise revenues to pay for increased NHS spending and reverse planned cuts to services. The Resolution Foundation has said a freeze on income tax and IHT thresholds could raise billions of pounds for public services. The thinktank also said cutting a string of tax reliefs for employers would improve the chancellor's warchest. Meanwhile, the IFS has said the “minimal definition” of ending austerity would require 1% to be added to VAT, income tax rates and NICs, although Anna Isaac in the Telegraph says such a move would be “politically explosive.” Ms Isaac compares Mr Hammond’s situation to Kenneth Clarke’s first Budget as chancellor in November 1993, which delivered some of the largest tax hikes since the aftermath of the Second World War, as well as the “surreptitious tax take”, of freezing the personal allowance for income tax. Elsewhere, the FT’s leader says Mr Hammond must be upfront about the fact that higher taxes will be needed to pay for increased spending. Lastly, the Telegraph’s editorial warns the chancellor against scrapping tax breaks for pensions, suggesting he would be “storing up trouble for decades to come.”

Follow Us