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The Budget – what will affect you?

In the run up to any Budget we usually see speculation, forecasts and expectations, but it’s not until the actual day of the delivery speech that we see what will really transpire.

This year’s budget will take place on 29 October which is unusual to say the least. First, it’s taking place on a Monday (it’s usually on a Wednesday) and secondly, it has been brought forward, due to final Brexit discussions scheduled in November.

Last year Philip Hammond stated he was switching his announcements around. Major tax or spending changes would occur only once a year and be moved to the autumn (November) and the Spring Statement would be representative of the season it occurs in and used to provide a statement, update forecasts and report on progress since the last Budget.

So this year it’s on a Monday in October and although I’ve nothing against Monday’s per se, although it’s worth noting that Halloween follows shortly afterwards, but this is the first time since 1962 that a Budget has been held on a Monday.

The 2018 Spring Statement was relatively uneventful, which I did admit to feeling a little disappointed about (Revisit it here), but with Theresa May’s bold announcement that “austerity is over”, she may have made Philip Hammond’s job a lot trickier.

The Prime Minister has also announced a freeze of fuel duty, which represents the ninth consecutive year, so does this rule it out for the Chancellor? Some expected him to scrap it entirely this year. The NHS is due an extra £20bn by 2023, so it will be interesting to see how Mr Hammond creates the revenue for this.

On 6 September, the Government announced that it was scrapping plans to abolish Class 2 National Insurance contributions, affecting the self employed, as we reported in our previous article which you can revisit here.

Since the big shakeup to pensions a few years ago it’s been surprisingly quiet and not unwelcome, but many pension experts believe that this could be the year that tax relief may be in the Chancellor’s sights this year. There has been previous speculation over reductions to tax relief or increasing a flat rate scheme, but so far none have come to fruition.

All this is in the hands of the Chancellor and his red case. I’ll be watching and reviewing the post-Budget documentation to see what affects who and will be reporting live from Armstrong Watson Financial Planning's Twitter account https://twitter.com/AW_Wealth) and via our news pages (https://www.armstrongwatsonfp.co.uk/news) and LinkedIn page (https://www.linkedin.com/company/armstrong-watson-financial-planning-&-wealth-management/), so please follow us and look out for our posts.

Our commentary will also go out with Armstrong Watson’s analysis at the end of the day.

 

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