We originally reported that this week’s Budget could be a “non-event” given recent announcements, but over the weekend there have been a series of leaks suggesting there may be some significant changes to come.
What do we already know?
- National insurance is due to increase by 1.25% from April 2022
- The National Living Wage set to rise to £9.50 an hour (a 6.6% increase for those aged over 23)
- The NHS is to receive funding to help clear the current backlog of patients
- £2Bn will be invested in building homes on derelict or unused land
- 9Bn is to be spent on public transport in certain regions, which included the link between Bristol and Bath
What has been suggested that could happen?
There is talk of:
- A simplification of Alcohol duties
- An uplift in Capital Gains Tax rates to align them with income tax rates
- Student loan repayment thresholds could begin at a lower income threshold
- A cut to the tax relief that is available to higher rate taxpayers for pension contributions
Many of these points have been mentioned before and some are more specific to current economical circumstances.
It is not unusual to include a “rabbit out of the hat” moment during the Budget itself, and I suspect there will be something new mentioned so tune into our coverage tomorrow for details and reaction.
Please speak to your usual Randall & Payne contact to discuss any areas of concern for you or your business. Feel free to get in contact on 01242 776000 or complete our contact form.