🚨 Budget News Alert! 🚨
Big changes are on the horizon! Chancellor Rachel Reeves is gearing up for a major shakeup in the budget this week. Here’s a quick breakdown of what to expect:
🔥 Benefits Crackdown: Expect a stronger stance on benefit fraud with a new push to correct Universal Credit claims. The goal? To bring in an extra £1.2 billion by 2031!
👶 Two-Child Cap Scrapped: In a move that could cost over £3 billion, Reeves plans to remove the controversial two-child benefit cap, aiming for broader support for families.
🏠 Council Tax Update: More than 100,000 expensive properties might soon face new levies, specifically targeting homes valued over £2 million. Plus, a revaluation of 2.4 million properties in the top tax bands could mean some changes are coming your way.
🚗 Pay-Per-Mile for Electric Vehicles: Electric car owners, keep an ear out! A potential new tax could charge you per mile driven.
💼 Pension and Tax Adjustments: Caps on salary sacrifice schemes for pensions might tighten, and there’s talk of extending the freeze on income tax thresholds. This could mean more people paying more tax as their salaries climb.
📈 State Pensions: It’s not all tightening belts; 13 million pensioners are expected to enjoy a boost with an above-inflation rise in state pensions next April, reaffirming the Government’s commitment to the triple lock.
But not everyone is on board. Critics label the plans a tax ‘stitch-up’, with concerns about a stealth tax increase with more people pulled into paying higher tax rates. The Lib Dems called it “rank hypocrisy,” highlighting the financial strain on families already feeling the pinch.
Stay tuned, as the Budget unfolds this week for more updates on how these changes might impact you! 💸
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