This years budget will be a really interesting one, now the Conservatives have their well deserved majority they can afford to be radical, also the first budget of a new administration is often seen as the time to push through unpopular tax rises, whilst towards election time things need to be less radical and more popularist.
I support Boris and I know his instincts are for big capital spend items, such as the bridget between Scotland and Ireland, I also know he will want to be seen to deliver for the new MP’s he has in the Midlands and North of England.
So what do I expect?
Well big increases in spending on projects for one.
HS2 will most likely go ahead.
Environmental spending, here I am expecting a VAT increase on Fossil fuel, Gas for example is currently 5% that could rise to 20% making it much more attractive to use companies offering renewable sourced electricity instead and taxing that at 5% instead that would put further pressure on the move to renewables.
Levelling up the country has been mentioned a lot, so I think that means soaking Labour London with tax increases to pay for spending in the midlands.
Pension are under threat again, I really hope that is left alone, as we need to be driving up the % of incomes that are invested into the country and for people’s retirement.
If the higher rates of income tax are reduced or the starting point for the 40% then that is different, I really hope that is planned.
Rumours are often circulated intentionally only not to be included in a budget, which then gives a sense of relief which covers over the real intention which is to raise taxes!
