Budget 2020 UK – To go ahead on March 11!
Following the resignation of Sajid Javid last week, there has been much speculation on how this will affect the direction of the budget to be presented to parliament next month.
There were suggestions that the Budget may have to be delayed but it seems that this is not the case. It’s unusual to have a Chancellor appointed who never gets to present a budget and Mr Javid becomes the shortest serving Chancellor in 50 years. Not the greatest record for one’s C.V. I would suggest.
Rishi Sunak, who replaces Sajid, is stepping into the Chancellor’s role with little experience but does seem to have attained “rising star” status as far as number 10 is concerned. Perhaps this was achieved by him agreeing to do as he was told by Dominic Cummings..?
Anyway – what can we expect from the forthcoming UK 2020 budget?
Rumours are rife and it seems that this change could lead to the Treasury opening its chequebook.
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 as will carbon capture and other climate related projects, for example, improving the energy efficiency of homes, schools and hospitals.
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 was due to reduce to 17% (from the present 19%) from April 2020. However, Boris Johnson, during the recent election campaign, did say that this intended increase would be dropped, and the rate maintained at 19%.
There is speculation that higher rate tax relief will be trimmed for contributions into private pension funds but to be frank I can recall this being the case for the last x number of years. The pension companies use it as a big incentive to get everyone to pay in more premiums before 5th April only for us to find that the relief is still there the day after. One year it’s going to actually happen I guess!
A cross-party group of MPs has called for a reduction in the rate of Inheritance Tax, from 40% to 10%, 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 pubs.
Meanwhile, back at number 11 Downing Street, Rishi Sunak will be burning the midnight oil to prepare himself for his dispatch-box presentation on 11 March. We will be reporting on the outcome of his disclosures in due course……watch this space.