Autumn budget: Rishi Sunak is set to make five announcements, including increased tax raids.
After the devastating economic repercussions of the coronavirus pandemic, RISHI Sunak’s autumn Budget will be released at the end of October, and a number of measures are expected to raise finances.
The Chancellor has previously warned of future public-spending squeezes in order to help the country “build back better,” with the £36 billion National Insurance hike set to begin in April already confirmed. But, as analysts speculate about the Chancellor’s imminent statement, what additional adjustments do you think he’ll make? For the past ten years, the Conservative government has raised council tax every year.
If history is any guide, Mr Sunak is unlikely to deviate from the norm, and is rumored to be boosting council tax by up to 5%.
The increase would bring the average band D property’s yearly council tax bill close to £2,000 per year.
If the Chancellor decides to alter obsolete alcohol duties that date back to the 1600s, a pint of beer might become more or less expensive.
Changes could include a uniform tax rate across all types of alcohol or an annual increase in alcohol duty in accordance with inflation.
Other ideas include different charges based on where the alcohol is purchased, such as reduced rates in pubs vs supermarkets or vice versa.
Experts have offered recommendations on capital gains rates, indicating that they may rise in tandem with income tax rates.
For higher-rate taxpayers, this may mean an increase from 28% to 40%.
Inheritance tax benefits, such as the 100 percent exemption on Aim shares, might also be eliminated.
One option to obtain considerable funds, according to pension experts, is to raid pensions by limiting tax assistance on contributions for higher earnings.
They’ve also proposed limiting the amount of money workers can set aside for retirement.
However, such reforms would be wildly unpopular among the Conservative Party’s core voters.
The Chancellor is said to be lowering the pay-back threshold for higher education debts, which could result in graduates losing hundreds of pounds in income.
Mr Sunak may lower the threshold to around £23,000, down from £27,000, raising roughly £2 billion for the Treasury each year.
The proposal would reverse a previous rise, which was set at £21,000 under former Prime Minister Theresa May.