The resignation of chancellor Sajid Javid this month opened the door for Rishi Sunak to take on his role. But, also landed him with the enormous task of preparing the Budget within a month.
There was some speculation that the Budget could be delayed. But, Boris Johnson is keen to press ahead with the original delivery date of March 11th.
Budget 2020 Predictions
So, what can we expect when he opens the famous red box?
- Infrastructure and the NHS seem to be the two major areas for investment
- HS2 and other rail improvements in the North are likely to be beneficiaries
- Carbon capture and improving the energy efficiency of homes, schools and hospitals.
National Insurance Threshold
The Government has already said it will not be increasing any of the major taxes and has recently published details of an increase in the NIC threshold, to £9,500.
Corporation Tax
Corporation tax was due to reduce to 17 per cent (from the present 19 per cent) from April 2020. However, Johnson, during the recent election campaign, did say that this intended increase would be dropped, and the rate maintained at 19 per cent.
Supporting High Street Businesses
There is speculation that higher rate tax relief will be trimmed for contributions into private pension funds.
A cross-party group of MPs has called for a reduction in the rate of inheritance tax, from 40 per cent to 10 per cent, together with a reduction in many of the inheritance tax allowances and reliefs.
Business rates are another target for relief in an attempt to support beleaguered High Street businesses. Additional support has already been announced for retailers and public houses.
Bracey’s Budget Update
We will be reporting on the outcome of his disclosures in due course. In the meantime, check our dedicated Budget news, updates and analysis, here.
