Budget forecasts. Childcare costs, petrol prices, changes to the state pension age

Jeremy Hunt is expected to play it safe when he delivers his first Spring Budget as chancellor today.

After announcing a number of stealth taxes in its autumn statement, there could be a few tax breaks.

Although public finances are slightly higher than in November. borrowing so far this year is £30 billion below forecasts, Mr Hunt is likely to remain cautious on spending.

Forecasts. After announcing a number of stealth taxes in his Autumn Statement, Jeremy Hunt’s first Spring Budget could include some tax breaks.

Here, Money Mail talks you through what to look out for and Paddy Power gives you a rundown of the upcoming policy changes.

Price guarantee

In an announcement released on the eve of the Budget, the Government has now confirmed that the current cap on energy charges will be maintained.

The energy price guarantee was set to rise from an average of £2,500 to £3,000 from April.

However, after wholesale gas prices fall, it will maintain the current level of support.

Pension reforms

An important priority is to push older workers back from retirement.

As well as increasing the lifetime pension allowance to £1.8m, he can make changes to the Money Purchase Annual Allowance (MPAA).

This is the amount savers can put into their pension each year once they start making taxable contributions (currently £4,000).

  • Probability of Lifetime Benefit Increase: 1/10 ON
  • Chances of an MPAA raise: 4/6 ON

State pension age

As discussions about the state pension age continue, it is possible that announcements will be made in the budget.

The state pension age should rise to 67 in 2026-2028, and to 68 in 2044-2046.

But that could be accelerated to 68 between 2037 and 2039.

Gasoline prices

Experts predict Mr Hunt will again freeze fuel duty, which has been done by successive Chancellors for the past 12 years.

Last spring, then chancellor Rishi Sunak also cut fuel duty by 5p a liter in a bid to keep prices down at the pump. This is also likely to be extended.

Child care changes

High childcare costs have attracted more attention in the run-up to the Budget amid warnings that extortionate fees are forcing parents to leave the workforce or cut back on working hours.

The Treasury is said to be considering a larger offer of more free hours for one- and two-year-olds.

The chancellor is also expected to boost support for low-income families by increasing the amount parents can claim on Universal Credit for childcare.

  • Odds of childcare assistance: 1/100 ON

Tax cuts

The national tax burden is the highest since World War II.

However, Mr Hunt is unlikely to reverse the tax hike which will take place from April 6.

A planned six-year freeze on income tax thresholds is expected.

Corporation tax is set to rise from 19 per cent to 25 per cent, despite calls from business leaders to ax the rise.

  • Income Tax Freeze Threshold Return Odds: 7/2 AGAINST. Odds of a reduction in corporation tax: 20/1 AGAINST

[email protected]

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; flame:left; simple. both of them; max-width: 636px; margin:0; charge:0; line-height: 120%; font size: 12px; width: 100%;} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; charge:0; line-height: 120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; flame:left; width: 100%; background-color: #B11B16; } #fiveDealsWidget .widgetTitle { color: #fff; text-transform: uppercase; font size: 18px; font-weight: bold; margin: 6px 10px 4px 10px; } #fiveDealsWidget a.dealItem { float: left; display:block; width: 124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px by 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #cccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color: #e22953; font-weight: bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; flame:left; width: 100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText { font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem { width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none} #fiveDealsWidget .widgetTitleBox {background-color: e3e3e3; } #fiveDealsWidget .widgetTitle {color:#000} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height: automatic; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Source link