Left Foot Forward has looked at a few things we already know will be in today's Budget as well as at those things which stand half a chance of making it.
Will George Osborne “go for growth” by opting for economic stimulus? Will he seek to placate the Tory Right with a package of tax cuts and a further slashing of the state?
Left Foot Forward has looked at a few things that we already know will be in today’s Budget as well as the things which stand half a chance of making it.
. We know from the Autumn Statement that the personal allowance – the amount you can earn before having to pay income tax – will go up in April from £8,105 to £9,440.
. We also know that additional personal allowance for pensioners will be frozen for those already over 65 and scrapped altogether for anyone turning 65.
. The basic state pension will go up 2.5 per cent to £110.45 a week.
. Flat rate pension brought forward one year.
. Child Trust Funds to be convertible to ISAs.
. The Isa allowance will increase to £11,520.
. £2.5bn of cuts coming from Whitehall Budgets – where will the savings come from?
. £2.5bn for housing and other infrastructure projects.
. Childcare vouchers of £1,200 for families where both parents are in work.
. Approval for a new nuclear generator at Hinkley Point.
. Right-to-Buy extended with Londoners to receive £100,000 discount.
. The government will accept key findings of the Heseltine Review on boosting regional growth.
Look out for
. The £10,000 personal tax allowance will be brought forward one year, arriving in 2014.
. Cut to capital gains tax – the higher rate may be lowered from 28 per cent to 25 per cent in an effort to encourage growth.
. A cut to Corporation tax to appease the Tory Right – although the main rate is already due to fall from its current rate of 24 per cent to 23 per cent this April and to 22 per cent in April 2014. If there is a further cut to corporation tax, the key question is: who’s going to pay for it? An extra 1p off the headline rate would cost about £0.4 billion in 2013/14 and £0.8 billion by 2014/15, according to analysts.
. A 1.5 per cent pay rise for the armed forces.
. Beer duty escalator scrapped – therefore no prospective 6p rise in the cost of a pint.
. A rise in National Insurance contributions could be introduced for the self-employed.
. We may also see an announcement on when the government expects to sell its equity in part state-owned banks.
. The Funding for Lending Scheme could be extended, according to the Financial Times (£), on the back of calls by the Liberal Democrats for it to be put “on steroids”.
. Boost for small banks: Osborne may announce a new consultation into competition in the payments system, according to City A.M.
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