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UK Chancellor of the Exchequer Jeremy Hunt on Wednesday announced a spring budget will be set out on March 6, in what could be his last chance to introduce tax changes before the next general election.
Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside the budget next year.
The Tories have been dropping hints they could make attention-grabbing pledges on housing and taxes as UK Prime Minister Rishi Sunak struggles to turn around his party’s major deficit in the polls.
Housing Secretary Michael Gove suggested to the Times that the Conservatives will promise to cut the up-front cost of a home for first-time buyers in a pre-election giveaway.
And Sunak has ordered a ‘gear change’ to reduce the historically high tax burden, possibly axing inheritance tax and reducing income tax, according to the Telegraph.
Both reports emerged as Sunak struggles to turn the tide in favour of his party as Labour sits around 20 points clear in the polls.
The Times said that government ministers are considering government support for longer fixed-term mortgages to reduce the size of deposits for first-time buyers.
A resurrected help-to-buy scheme was also said to be on the table for the spring budget or in the Conservative election manifesto.
Asked by the Times whether the Conservatives would be able to go into next year’s expected election promising more help for first-time buyers, Gove said: ‘Oh, yes, we must. Definitely.’
Meanwhile, the Telegraph said senior figures in No 10 were considering a handful of major tax cuts as Sunak comes under continued pressure from Tory MPs.
Cutting inheritance tax, in a move that would benefit the wealthy, would likely create a dividing line with Labour, which is unlikely to support such a cut.
However, some Conservatives have expressed opposition to the measure because most people suffer the burden of elevated costs after a sustained period of high inflation.
The government has not commented on either of the newspaper reports.
The next general election must be held before the end of January 2025 but it is in Sunak’s power when to call it. Most in Westminster expect it to be held in the autumn.
By PA Reporters
source: PA
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