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March Budget set to deliver government’s tax promises

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Written by: Paloma Kubiak
07/01/2020
The Budget will take place on 11 March and the government has said it will set out its priorities for the coming year, including help to tackle the cost of living.

Chancellor of the Exchequer Sajid Javid has confirmed he will hold his first Budget on Wednesday 11 March.

He said the Budget will “set out ambitious plans to unleash Britain’s potential” which include delivering promises on tax to help tackle the cost of living for hard-working people.

Last month, the government announced the National Living Wage will increase from £8.21 to £8.72 an hour from April, the biggest cash increase ever.

The government said it will also look to take advantage of low interest rates to invest properly and responsibly while keeping debt under control.

Javid said the Budget will prioritise the environment and boost spending on public services.

But given the Conservative manifesto in the run up to the General Election, it’s likely there will be announcements on net pay and the annual allowance taper.

Tom Selby, senior analyst at AJ Bell, said: “The net pay issue has plagued low earners for years, with those in the wrong type of pension scheme missing out on valuable tax relief. The Conservatives have promised a ‘comprehensive review’ to fix the problem, although it is by no means certain a solution will be found in the next three months.

“The taper is perhaps the more pressing problem politically, particularly given the impact it has had on high-earning workers in the NHS.

“If a radical overhaul of tax relief is in the offing, it is important this is carried out sensibly and doesn’t risk the fragile savings culture currently being fostered in the UK.

“Ripping up the roots of our savings system without first understanding how this might affect the propensity of people to save for retirement would be a huge risk and could undermine the good work so far done under automatic enrolment.”

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