Racing certainties and outsiders in Budget (From The Northern Echo)

Racing certainties and outsiders in Budget

8:44am Monday 22nd March 2010 in

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THE Budget will probably not contain any big surprises, experts from PricewaterhouseCoopers (PwC) have predicted.

Ahead of the Chancellor unveiling his Budget on Wednesday – the last one before the General Election – PwC in Newcastle has said it believes it is most likely Alistair Darling will produce a run-through of previouslyannounced measures, and an update on work in progress.

Tim Porter, tax partner at PwC in Newcastle, said: “In this, the Chancellor’s last Budget before the election, he has the chance to deliver clear messages to address concerns on growth and recovery.”

Mr Porter offered some odds on potential announcements on Wednesday:

● Alcohol and cigarettes – a rise across the board to encourage us all to get in shape for the upturn, 1-2

● VAT – A rise of 2.5 per cent to 20 per cent, potentially raising more than £10bn for the Treasury, 10-1

● Income tax – Raise the 40 per cent rate of income tax by 1p for the life of the next Parliament, 25-1

● Green home “scrappage scheme” – a financial incentive for home goods to encourage purchase of the most energy-efficient models, 50-1

● Pensions – Stopping relief for employer pension contributions, raising £8bn, 100-1.

● Inheritance tax (IHT) – An outside bet, with a complete abolition of IHT on lifetime gifts. 1,000-1

■ Financial experts Carol Chleboun and Paul Dixon will be providing a live commentary on the Budget on The Northern Echo’s website – northernecho.co.uk – from 12.30pm on Wednesday.