Chancellor George Osborne is warming up his vocal chords to deliver this year’s Budget on 19 March. However, he will need to speak loudly and clearly to be heard over the chorus of calls for tax freezes and other incentives.
While Osborne has made it clear that it will be a budget of “hard truths”, industry leaders are pushing for a series of freezes on energy, fuel and various other forms of tax and duty.
Others are calling for relief for higher-rate taxpayers. While the personal allowance will rise to £10,000 in April, the basic-rate tax limit will fall to £31,865 in 2014/15 from £32,010 in 2013/14, meaning more Brits will pay 40 per cent tax.
Conservative MP David Ruffley said: The people who are low paid have had tax reductions. Hasn’t the time come to focus on people who are not rich but the striving middle?
The Confederation of British Industry (CBI) has called for at least three tax initiatives, including:
- A freeze on air passenger duty
- A freeze on the carbon price floor (a tax on electricity derived from fossil fuels)
- Relief on CGT after five years
The CBI hopes that these and other measures will help UK-based businesses to grow and prosper, which will in turn kickstart the economy. It remains to be seen whether recouping the deficit or bolstering UK industry will top the priority list in this year’s Budget.
If you would like to know more about how the Budget will affect your business or personal finances, speak to our experienced advisors at Urquhart Warner Myers (UWM). We can explain how prospective tax freezes could affect you and help you to reduce the impact of any less favourable Budget measures.
Give us a call today on 0113 231 0202, email mail@uwm.co.uk or complete our contact form to find out more.
