When is your fall budget and what does that mean for your money?explanation

Rishi Sunak has already announced a significant tax increase, but is the £ 12bn annual social care package sufficient, or will the 2021 Spending Review increase it further?I’ll take a look

The prime minister is about to withdraw a whole new set of changes

Last month, the £ 20 weekly Universal Credit lifeline was canceled, furloughs were closed, and the energy crisis was unraveled. Next year, household bills will increase by hundreds of dollars.

At the same time, the prime minister has pushed for the largest personal tax hike in 20 years – 1.25% increase in national insurance It will turn into a social care tax in April next year, raising an additional £ 12 billion for care and the NHS.

Snacks say the economy is booming – 1.2 million jobs and jobs have returned to pre-Covid levels -But households are facing a cost of living crisis and inflation could exceed 4% by Christmas.

The Tories have already broken their promise to raise taxes-that is, when the prime minister delivers his latest fall, we don’t know how far this month will go. budget To the country.

Income tax personal deductions have already been frozen at £ 12,570 from April to 2026 next year, with a higher tax rate threshold of £ 50,270.

National debt has been at its highest since 1963, so let’s take a look at what could be announced on October 27th.

What does the Prime Minister want to announce?Please let us know in the comments below

Vacancy may be increasing, but the economy is still far behind its pre-Covid state


Alex Lentati / LNP)

Universal credit

The prime minister is under pressure to increase benefits of more than £ 700m annually to mitigate the impact of withdrawal £ 20 Weekly Universal Credit Raise.. The possibility of this will be revealed in the budget.

This is because charities and campaign participants have warned that this month’s cuts will set a record high for families using food banks this winter.

The Prime Minister ended £ 5 billion of Covid support annually on October 6th.

Richard Lane, Director of Foreign Affairs at StepChange, said: £ 500m Household Support Fund Helps people deal with one-off emergencies. But when faced with today’s cuts, millions of people will face daily struggles just to overcome, with the end of furloughs, rising energy prices and rising inflation.

“When the Prime Minister said that everyone should be able to achieve their goals, we agree, but this will be immeasurably difficult for households that are £ 1,040 less. The government will be in the coming weeks. There is an opportunity to set this right by assessing the impact of the reduction and reversing it before the damage becomes serious. “

Alcohol tariffs

The freeze on alcohol tax during the Covid period and the temporary reduction of VAT in hospitality and tourism from 20% to 5% ended this month.

With much of the hospitality industry at full capacity, this Covid cut is unlikely to be extended, which means pubs and restaurants will return to higher taxes. That is, those who give this bailout to consumers will probably revert their prices.

minimum wage

Treasury is also expected to see a 5.7% increase minimum wage Up to £ 9.42 per hour for ages 23 and up.

This 5.7% increase is equivalent to £ 928 a year before tax for those who work 35 hours a week.

The national living wage is different from the actual living wage calculated by the Living Wage Foundation (LWF) based on living expenses.

Raising the national living wage to £ 9.42 is very close to LWF’s current recommendation of £ 9.50 per hour.

Nothing has been said yet about whether Boris Johnson Raise the government’s minimum wage under the age of 23.

National pension

government We have already confirmed that the state-owned pension “Triple Lock” will be suspended for one year. Due to a biased increase in average earnings during the Covid period.

Triple Lock guarantees that state pensions will increase each year due to inflation, growth in average wage income, or 2.5% (whichever is higher).

Next year it will rise to 2.5%, the highest of September’s inflation rates. This is scheduled for next week.

Cladding tax

Earlier this year, the government introduced a £ 3.5bn fund to pay for the removal or restoration of coverings for buildings over 18 meters (6 stories) high in the United Kingdom.

There are rumors that now Rishi Sunak There are plans for a residential real estate developer tax to pay for this removal of flammable coatings from skyscrapers.

Taxes are paid by homebuilders with a profit of over £ 25m. It is expected to raise at least £ 2 billion over the next 10 years.

How about climate change?

Budget will take place just before the International Climate Summit COP26..

With a budget for March 2021, the Prime Minister announced NS & I Green Savings Bonds, According to the NS & I website, these are not yet available for several months.

Autumn budget will also be announced A replacement for the failed Green Homes Grant To make the house more eco-friendly.

There may also be progress in the plan Replace gas boiler under Clean Heats Grant – Prior to the 2035 ban, households will be subsidized to exchange for more sustainable alternatives.

Energy price reform

Soaring energy prices are the number one concern most households face this winter and are rapidly becoming one of the biggest issues the government needs to address.

Faced by many families Choosing to provide food or heating after wholesale gas prices have risen 250% could provide a lifeline for those households..

They can extend the warm home discount scheme so that more people can benefit or increase it from the current £ 140.

Winter fuel payments can also be increased for pensioners who will be hit hardest this winter. Amounts have been frozen for years, but this was lower because the government previously introduced a temporary increase of £ 50 in 2009-11, but there is precedent. Labor..

Of course, such payments are costly – the Treasury estimates it to be £ 2 billion.

Council tax

It will be interesting to see how much money the government will provide to the local council in the next 12 months.

Local councils are struggling to submit some new social care plan bills announced by the government earlier this year.

Simply put, if Congress cannot get funding from the government, they will have to go public and raise the Council tax.

The IFS has already predicted a potential increase of about £ 240 relative to average billing over the next few years if central government funding is not provided, and even in its best scenario, invoices over the next few years. We expect an additional 160 pounds to be added to. ..

Personal allowance

From April to 2026 next year, the Prime Minister has already frozen the personal income tax deduction at £ 12,570 and the higher tax rate threshold at £ 50,270.

inheritance tax

The prime minister has evaded a call to raise the inheritance tax in the March budget, but tax experts say the tax can be reduced this time.

Changing the inheritance rules will increase the Treasury’s financial resources without changing the labor tax rate.

When is your fall budget and what does that mean for your money?explanation

Source link When is your fall budget and what does that mean for your money?explanation

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