Childcare costs, gas prices, change in retirement age… So what else could Hunt have put in his Budget box?
- Hunt is set to announce an increase in lifetime retirement allowance to £1.8m
- Price cap expected to stay at an average of £2,500 after wholesale gas prices fall
- Fuel duties should be frozen again – as they have been for the past 12 years
Jeremy Hunt is expected to play it safe when he presents his first spring budget as chancellor today.
After announcing a series of stealth taxes in its fall statement, there could be a few tax giveaways.
Even though public finances are slightly rosier than in November – borrowing so far this year is reportedly £30bn lower than forecast – Mr Hunt is expected to remain cautious about spending.
Predictions: After announcing a series of stealth taxes in his fall statement, there could be a few tax giveaways in Jeremy Hunt’s first spring budget.
Here, Money Mail tells you what to watch out for – and Paddy Power gives the odds of upcoming policy changes.
Price guarantee
It is likely that the current cap on energy bills will be maintained.
The energy price guarantee was due to rise from an average of £2,500 to £3,000 from April.
But following a drop in wholesale gas prices, it looks like the Chancellor will maintain the existing level of support.
Pension reforms
A key priority is to attract older workers to retirement.
As well as a £1.8m Lifetime Retirement Allowance increase, it could make changes to the Defined Contribution Annual Allowance (MPAA).
This is the amount savers can contribute to their pension each year, once they start making taxable withdrawals (currently £4,000).
- Lifetime Allowance Increase Chance: 1/10 ON
- Chance to increase MPAA: 4/6 ON
Legal retirement age
As the debate over the legal retirement age continues, announcements may be made in the budget.
The legal retirement age should increase to 67 between 2026 and 2028, then to 68 between 2044 and 2046.
But this could be accelerated to reach 68 between 2037 and 2039.
Gasoline prices
Experts predict Mr Hunt will freeze fuel duties again – this has been done by successive Chancellors for the past 12 years.
Last spring, then-Chancellor Rishi Sunak also cut fuel taxes by 5p per litre, in a bid to keep prices low at the pump. This is also likely to be extended.
Custody changes
High childcare costs have drawn increasing attention from the budget perspective amid warnings that exorbitant fees are forcing parents out of the workforce or cutting hours.
The Treasury is reportedly considering a larger offer of free childcare hours for one and two year olds.
The Chancellor is also expected to boost support for low-income families – by increasing the amount parents on Universal Credit can claim for childcare.
- Child care assistance ratings: 1/100 ON
tax cuts
The national tax burden is at its highest level since World War II.
However, Mr Hunt is unlikely to backtrack on the planned tax hikes from April 6.
A planned six-year freeze on income tax thresholds is expected to continue.
Corporation tax is set to rise from 19% to 25% – despite calls from business leaders to scrap the hike.
- Odds of undoing the income tax threshold freeze: 7/2 VS. Odds on the corporate tax cut: 20/1 VS
t.armstrong@dailymail.co.uk
