TaxCorporate TaxPre-Budget spotlight on public sector

Pre-Budget spotlight on public sector

Seen as a pre-cursor to next year's Budget and a hint as to what measures may be introduced in the Spring, this year's pre Budget report is expected to focus on public sector funding and the war on terrorism.

During his speech to the Commons tomorrow, chancellor Gordon Brown will publish interim results of the Derek Wanless report into NHS spending, setting out the factors pushing up spending on the public health care and efforts needed to raise standards.

As part of this public sector drive, Brown is also expected to promise schools a greater chunk of public spending in the future

This is likely to fire off a debate on public sector spending and whether taxes should be increased to fund improved services.

The chancellor is also expected to inject more cash into the fight against terrorism, with Pounds 120m earmarked for this purpose. This follows the passing of the Anti-Terrorist Bill introducing in October, setting out tough new measures to crack down on financial institutions which launder terror funds.

And the state of the British economy will also be assessed with some experts expecting Brown to reduce growth estimates for GDP from the existing range of 2.25%-2.75% to a more conservative range of between 1.5% to 2%, despite an overall endorsement of the status quo.

Other measures expected:

  • extension of the pensioners’ Pounds 200 winter fuel payment to the next election
  • scrapping of VAT on football pools
  • cutting duty on beer made by small independent breweries
  • new tax credit from 2003, worth up to £35 per week for childless couples.
  • a new pensioner credit, designed to top up the income of pensioners not eligible for income support, will be revealed.
  • an overhauling of capital gains tax
  • simplification of VAT rules will help small business cut back on red tape

Chancellor of the Exchequer Gordon Brown will issue his pre-Budget report to the House of Commons at 3:30pm this afternoon. Make sure you keep logging onto AccountancyAge.com for all the news on the report as it happens, including analysis and comment from experts in accounting and finance.

Links

Treasury’s pre-Budget 2001 page

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter