Surprise awaiting in Budget

 

Rarely can a Budget box have contained so few surprises - though the chancellor hopes that at least one remains - the extent to which he is willing to reform the tax system.

George Osborne has decided to take the political risk of cutting taxes on the earnings of the rich as well as those on more modest incomes.

He will insist that it can all be paid for by increasing the cost to the rich of buying their homes and capping the tax relief they can use to shield their income from the Revenue.

So, the 50p top tax rate will be cut - though not straight away and not all at once.

There'll also be an increase in the amount you can earn before paying any tax at all, to more than £9,000 from April next year.

Planned cuts to child benefit will be revised to affect fewer families.

The billions all this will cost look set to be paid for by higher stamp duty on the sale of homes worth £2m or more, curbs on what is now legal tax avoidance and, we're told, a cut in public spending beyond those already unveiled.

What that cut is remains - for a few hours longer - one of the few budget secrets.

 
Nick Robinson Article written by Nick Robinson Nick Robinson Political editor

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  • rate this
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    Comment number 161.

    How can Mr Osborne say he wants just one tax allowance in place by 2015 of £10,000.
    Won't existing over 65s be getting £10,500 by then or am I reading this wrong.

  • rate this
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    Comment number 160.

    Look up "National Debt" you will see the government readily increases it and also pays it down. As and when required. The mechanism by which it does so hands the banks millions. And that is before Quantitative Easing where the government buys back its own debt.

    The government decides how much debt it carries.
    The government therefore decides who to tax.
    Who to give money to.
    On a whim. Of its own

  • rate this
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    Comment number 159.

    George Osborne does not realise it costs more for pensioners to run their homes a particularly heating bills as they spend more time at home as they do not go out to work.The freezing of pensioners age related allowances is an outrage especially when those earning over £150000+ will see their tax bills fall .We are the folk who bother to vote and he has made the biggest political blunder ..

  • rate this
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    Comment number 158.

    Political Business
    Screw the pensioners by stopping age related allowances, this is where over the next few years the Exchequer will make massive savings. Well done Nick for highlighting this

  • rate this
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    Comment number 157.

    "156.Sokrates_d
    Does anyone know how much is going to be brought into the coffers with the lowering of the Upper Earnings Limit (UEL) - or how many new people will fall into the higher tax rate as a result of this?"

    The UEL is a National Insurance concept. Nothing to do with tax.

 

Comments 5 of 161

 

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