What you can expect from the 2020 Budget on March 11th
The first post-Brexit Budget is due to be delivered by the newly appointed chancellor Rishi Sunak on the 11th of March 2020. With a large Conservative majority, Boris Johnson and the chancellor have plenty of scope to introduce some major reforms in public spending and taxes. So, what can you expect from the 2020 UK Budget?
The main election manifesto pledges
The Conservative manifesto’s main pledge was an increase to the paying threshold for National Insurance. This will take the form of a tax cut for over 30 million workers, with those earning more than £12,600 about £100 a year.
There was also a promise in the Queen’s speech for councils to receive an extra £1bn of funding to help tackle the social care crisis. This was to “ensure that the social care system provides everyone with the dignity and security they deserve and that no one who needs care has to sell their home to pay for it”. However, this could lead to a slight increase in council tax.
What else can you expect?
There’s potential for the Budget to address zero-hour contracts and maternity leave, and high-speed broadband could also get a mention as the roll-out of this service continues. There’s also an expectation that the freeze on fuel duty will be removed, to help with the country’s carbon emission goals. Something else mentioned in the Queen’s speech is the government’s proposed “First Homes” scheme, which would cut the cost of new builds by tens of thousands of pounds, potentially by as much as £94,000 in some cases. Any further details on these points could possibly be included in Mr. Sunak’s Budget.
It’s understood that some of the Budget has been re-written to address the spread of coronavirus, as economists warn of the potential effects on worldwide economies. The Budget will likely mention measures to prevent a massive effect on public health, businesses and the economy should the virus become an epidemic in the UK.
Several proposals of the previous chancellor, Sajid Javid, are expected to change under Mr. Sunak. The introduction of the “mansion tax”, which would have been imposed on expensive properties to then reduce stamp property that everyday buyers pay, has been ruled out. Mr. Javid’s pension tax relief restriction on those earning more than £50,000 a year has also been scrapped.
No matter what happens on the 11th March, our team of accountants, auditors, and business advisors will be ready to provide you with the essential advice that you need.
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