Budget 2014: What to watch out for
WHO: GEORGE OSBORNE
WHEN: 1TOMORROW
WHERE: HOUSE OF COMMONS
WHAT WE ALREADY KNOW
Help to Buy extended to 2020
The government’s flagship equity loan scheme to tackle the housing crisis is to be extended to 2020 for new homes. The Treasury expects this will fund a further 120,000 homes.
New garden city at Ebbsfleet
George Osborne announced a new garden city, the first in 100 years, at Ebbsfleet in Kent yesterday. The project will see 15,000 new homes built at the site, which is well connected by the high-speed rail link between London and Europe.
Increased personal allowance
The chancellor has already announced an increase in the personal allowance to £10,000 from this April.
More help for flood victims
The government is set to announce £140m more help for those affected by flooding in December and January this year on Wednesday. The money will be spent on maintenance and improvements.
WHAT MIGHT HAPPEN
A change to the 40p tax rate
The chancellor has come under pressure to do something to help the squeezed middle – people who pay the higher rate of tax but don’t earn mega-bucks. He is expected to increase the threshold by one per cent to £41,865 for 2014-15 but he could go further, though it would reduce revenues.
A further increase in the personal allowance
Osborne is widely expected to further increase the personal allowance to £10,500 – above the £10,000 he has already announced. This could of course be saved for his pre-election budget in 2015.
National insurance changes
The Treasury has already promised to cut NI contributions for employers who take on under 21s but this is due to come into effect in 2015. It could be brought forward to 2014 in this Budget.
Stamp duty
A review could be announced for the three per cent rate.
Business rate review
Like the changes to stamp duty, the chancellor could announce a review of the current situation – which many regard as unfair. Business rates are a thorny issue but a review would send a signal that Osborne understands the need for change.
Carbon price floor
It’s likely that the chancellor will choose to freeze the carbon price floor in his Budget. This would help UK manufacturers to compete with European rivals and could lead to lower energy bills for consumers.