Sian Steele, Head of Tax at Evelyn Partners, comments on the most likely tax cuts the Chancellor could implement in the upcoming Budget, following recent macroeconomic indicators.

The Chancellor of the Exchequer has three weeks to go until a hotly anticipated spring Budget. Households will watch the spring Budget keenly for any changes to taxation and benefits that could give a boost to their own financial outlook after years of uncertainty, stretched disposable incomes and languishing living standards. 

Sian Steele, Head of Tax at Evelyn Partners, said:

“Budgets are inevitably political affairs but this one is more so than most as it’s seen as something of a last-chance saloon for the Chancellor and his colleagues in Government to start winning back the electorate. 

“The Government could squeeze in an Autumn Statement before an election, but the feeling is that, if the aim is to make the UK’s households feel better off and more optimistic, then the spring Budget is the time to act. 

"It seems that a further National Insurance cut is emerging as the frontrunner for a big Budget tax announcement. This would enable the Government to again to present the tax cut as focused towards incentivising work, more so than a move on income tax which would benefit a wider range of the population, including pensioners.

“A move to reduce inheritance tax could be on the cards at the spring Budget, having failed to materialise at the Autumn Statement after months of kite flying for such a move and enthusiasm on the Conservative backbenches. But while a move on IHT would send a clear signal to the electorate, the immediate financial feelgood factor might be limited. 

“A flagging housing market and a sluggish electorate could well prompt the Chancellor to look at extending stamp duty reliefs at the Budget. At a minimum, that’s likely to mean making the current extensions permanent – but could also take the form of further extensions to reliefs or a reduction in the rates of SDLT."

Full press release: Will Hunt move on income tax or National Insurance, inheritance tax or stamp duty?

Media contact:

Adrian Lowery, Senior Media Relations Manager, Evelyn Partners, 07741 684187 / Adrian.Lowery@evelyn.com