The Government has announced the Chancellor’s Budget for 11th March 2020. This will be Sajid Javid’s first Budget – the first since the General Election. Here we set out some of the highlights that pundits are expecting in the Budget, which may be of interest to our clients:
The main personal finance pledge in the Tory manifesto was a tax cut for more than 30 million workers in the form of an increase in the threshold for paying National Insurance. This will save all workers earning more than £12,600 around £100 a year.
In the Queen’s Speech, the Government promised to get a grip on the social care crisis with an extra £1bn of funding for councils 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”. There could be hidden tax rises to pay for social care, however, as councils will be able to increase council tax by 2pc to raise extra cash.
The Budget could also include better workers’ rights to protect those on zero-hour contracts and maternity leave.
In a major housing announcement, the Queen’s speech included a 30pc discount for key workers and first-time buyers who are purchasing properties in their areas. Also touted was a policy allowing tenants to transfer deposits between rented properties.
The Government has also suggested ways to help the environment, including additional charges on single-use plastics.
Although neither the Queen’s Speech nor the manifesto included any cuts to income tax, increases to the minimum wage or changes to stamp duty, some pundits are suggesting that the Government may push through policies on all three elements.
Also some are predicting that there will be changes to tax reliefs for pensions and a review of entrepreneur’s relief, which the Tories have promised to reform.
It is also expected that the Chancellor will adopt new benefit-in-kind (BIK) tax rates on company cars, which were announced last summer. In July HM Treasury unveiled two possible BIK tables for company car drivers – a table for those driving a company car registered after 6th April 2020, and one for those driving a company car registered before that date.
Everything will be revealed during the Chancellor’s Budget speech on 11th March.