Emergency Budget day has finally arrived and as George Osborne prepare to unveil billions of pounds in spending cuts here’s a quick recap of how it might affect you.
We already know the main points and the UK is bracing itself for a steep Capital Gains Tax rise, changes to benefits for the middle classes and income tax relief for the poorer members of society.
With the deficit currently at 10.4 per cent above GDP it is expected that David Cameron’s Government will impose some of the harshest measures since World War Two austerity with a package made up of 80 per cent spending cuts and 20 per cent tax rises.
The budget is also expected to include more detail on plans for a bank levy and set out how the Government will regain control over Britain’s banking system.
And despite fierce opposition from investors experts say it is unlikely that the Chancellor will back track on the coalition’s plans to raise CGT to as much as 40 per cent.
There is also speculation that VAT will rise to 20 per cent, seeing the cost of alcohol and cigarettes increasing.
Airline tax could also rise if the government goes ahead with plans to tax airlines per plane rather than per passenger and Insurance premium tax, which is charged on car insurance and home insurance, could double.
One of the only positive measures is likely to be an increase in the income tax threshold by around £1000, meaning lower paid workers will be exempt from paying out.
The full details of the Emergency Budget will be delivered in a statement at 12.30pm today.
© Fair Investment Company Ltd