Jeremy Hunt, the Chancellor, is being forced to make big tax cuts in the March Budget. Photo: Victoria Jones/PA
The Spring Budget will be published on March 6, the Treasury announced, one of the earliest dates available to ministers.
Releasing economic announcements earlier in the spring means you will have more time to reduce taxes. voters will feel this ahead of the next general election.
The date was officially confirmed on Wednesday. The Treasury must notify the Office for Budget Responsibility (OBR) 10 weeks before the budget is adopted.
This means that Budget Day, when spending and tax policies are approved, is one of the most important events known. political moments between now and the next election.
Rishi Sunak, who as Prime Minister has the power to set the date for a general election, must hold it no later than January 2025.
In political circles There is widespread expectation that the fall of 2024 will become This means that the March budget could be the last financial report before voters cast their ballots.
However, this is not necessarily the case. Ultimately, the Treasury can decide when to publish such financial statements, provided that two of them are published each financial year and one is a budget statement.
Therefore, it remains possible that the second financial statement, such how the Autumn Statement, which will take place in September ahead of the November elections, could still take place.
Pressure to cut taxes
In any case, the March budget will be a chance for Mr Sunak and Jeremy Hunt, the chancellor, to change the political as well as economic situation they face. < /p>
For months No 10 and No 11 have determined the spring budget 2024, when the most politically beneficial tax cuts should be implemented.
They are under pressure to make big tax cuts as Tory MPs call for action, the tax burden approaches a 70-year high and the Conservatives trail Labor by about 20 percentage points in the polls.
The Telegraph reported this week that Number 10 is considering scrapping inheritance tax. There is also interest in lowering the basic income tax rate and raising the top rate threshold.
Mr Hunt has decided to time the two percentage point cut in the overall staff national insurance rate to January 6 next year rather than April, which is often when tax changes come into force as it is the start of the financial year.
This was interpreted by some as an attempt to ensure that the financial impact of tax cuts would be felt in the pockets of voters earlier than they otherwise would have been, potentially leading to political gains for the Tories as a result.< /p>
Likewise, passing the budget as early as possible in March gives more time to act if Sunak surprises Westminster by calling a snap general election this spring.
Sir Keir Starmer, the Labor leader, has said his shadow cabinet must be prepared to this turn of events.
Economic forecasts could worsen.
Another potential reason the Treasury decided to act sooner is fears that economic forecasts could get worse rather than better between now and the Budget.
In particular, some deciding the timing feared that economic growth forecasts could be lowered, leaving Mr. Hunt with less money to spend on tax cuts and other measures.
p>Leaving less time between the autumn November 22 Statement and the Budget minimizes uncertainty as there is less time for forecasts to change.
The Telegraph previously reported that the Treasury was considering a surprise February Budget, although this the step was ultimately not taken.
The OBR will publish its forecasts alongside the budget on 6 March, as has become tradition.
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