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10 things to look out for in the UK budget


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Thought this may be useful for some. Seen a few articles on this, but I personally liked the FT one, but know it may cost some people to see so thought I’d give a quick synopsis. Also, means I can square things up in my own head by writing it down. Hope it helps 

  1. The main message: primarily he is going to aim to convince the public everything is good going into Brexit and try and give a brighter outlook for the austerity measures. The basic ‘reduce debt, but borrowing, increase funding to key public services’ statement will probably roll out.
  2. Office for budget responsibility is set to say that public borrowing will be £13bn lower that it originally predicted in March. This means Hammond may be able to delay tax rises.
  3. Forecast: economic growth and inflation set to have little revision, however “It is also due to warn that all of its figures are based on a smooth UK departure from the EU, so a no-deal Brexit could derail its forecasts.”
  4. The NHS: further funding expected on the NHS.
  5. Tax strategy: expected to not see large tax increases due to reduced borrowing, also due to lack of majority in the Commons. Could however forecast tax vents in the future.
  6. FAANGS: Hammond thinks there’s a flaw in the international system when it comes to taxation of these companies. May be interesting to see efforts about this particular class.
  7. Pension: Mr Hammond thinks pension contribution tax relief is “eye-wateringly expensive”
  8. Plastic tax: very in vogue right now (irrespective of its usefulness in my opinion but there we go…) So single use plastic statement should be likely.
  9. Housing market: want to allow more real estate to be used for housing (such as shops etc) as well as “capture more of the increase in the value of land after planning permission is granted, to help finance the construction of social homes and local infrastructure.”
  10. Given all the above he may have the room to raise tax free personal allowance to £12500 – however if frozen this could raise billions in revenue by 2022.

So what are people looking out for in the budget? Trade opportunity is possible…

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  • JamesIG featured and unfeatured this topic
16 minutes ago, Caseynotes said:

Still can't get my head round what this is doing on a Monday, just doesn't seem right somehow. 

?

interesting point - hadn't even clocked. Apparently this means the Budget will be exactly five months before the date of Brexit and also the first time since 1962 that the budget has been delivered on a day other than a Wednesday.

Also thanks @PandaFace - useful overview.

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