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24 March 2010 Darling set to deliver pre-election Budget

Chancellor Alistair Darling will today unveil his last Budget before the forthcoming General Election.

With the UK economy remaining fragile and the public deficit at its highest level since the Second World War, Darling is expected to focus on measures to ‘secure the recovery, tackle borrowing and invest in [the] industrial future.’

‘At its heart is a growth package to help small business, promote innovation, invest in national infrastructure and key skills,’ he is likely to say. ‘This package will be partially paid for by switching spending from within existing allocations.’

Although Britain is expected to go to the polls in little over six weeks, the ballooning public deficit will afford Darling little scope for pre-election sweeteners.

However, it is thought that the 3 pence rise in petrol duty, planned for 1 April, could be postponed, and stamp duty on house sales of up to £250,000 may be scrapped for first time buyers.

Commentators have signalled that there may also be help for jobseekers and those on low incomes.

While a raft of new tax rises are unlikely to be unveiled so close to polling day, some experts are warning that cigarette and alcohol duty could increase by as much as 5%. A fresh clampdown on tax evasion could also be on the agenda.

Plans have already been confirmed for a new 50% top rate of income tax for individuals earning over £150,000, effective from next month.

There are many important provisions included within the Budget that fail to make the headlines; yet these may also affect you and your business. Please contact us for more information and advice.