George Osborne reveals plans for summer budget
Hot on the heels of April’s announcements and the general election, the Chancellor George Osborne has announced today that he will be compiling a budget designed to incorporate the Conservative party’s manifesto pledges. Scheduled to be released this summer, on Wednesday the 8th July, Mr Osborne told reporters from the BBC that the budget would demonstrate his party’s commitment to putting working people at the heart of this, his seventh annual budget.
Although the chancellor has acknowledged that any party releasing two budgets within months of one another sets an unusual precedent, but he put this down to his enthusiasm at the idea of putting the Conservative’s election promises into action. The journalists from the BBC, to whom Mr Osborne spoke this morning outside 11 Downing Street, learned that he is planning to reveal a raft of measures which will help to boost productivity, improve the overall standards of living throughout the UK and improve the UK’s finances.
The first budget of the newly formed Conservative government will be Mr Osborne’s attempt to balance the UK’s finances, taking into account the budget deficit which amounts to £57 billion and proposed cuts to benefits which amount to around £12 billion. The Chancellor has described his proposals as a ‘balanced plan to deal with our debts’, which many commentators believe is a sign that he will continue to focus on tax avoidance.
The chancellor is expecting to raise more than £5 billion by clamping down on tax evasion and aggressive avoidance tactics. These moves are likely to be welcomed by the business community, according to a survey which was published today that suggests that they will welcome a harder line on those who do not contribute to the system in the way that they should.
Although the Institute of Directors are generally in favour of the plans to clamp down on tax avoidance, there is some scepticism over the figures that have been cited. Alongside the overwhelming majority of members of the Institute for Fiscal Studies, the IoD also believe that the figure of £5 billion is overly optimistic at best and unrealistic at worse with less than 15% expressing confidence that the figure is achievable.
The potential for additional surcharges to be added to company dividends could be a less popular move amongst the business community, a measure which some have predicted if the rate of Capital Gains Tax is left unaltered.
For many, this budget could be the beginning of a more supportive environment for independent professionals, with small businesses being better represented and the playing field being levelled, however the devil is in the detail, so this July’s budget will be eagerly awaited by the whole country.
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