Tomorrow is a big day for the Chancellor, an opportunity to tell us just how he plans to get us out if the mess created by the credit crunch. So what will he do? Increase taxes - probably, but no doubt in the usual way - it will be the stealth taxes rather than basic rate income tax, but watch out for announcements on national insurance rates and thresholds, perhaps new higher rates of income tax for "high" earners, and no doubt business tax will go up too. Of course any tax hikes need to be accompanies with cuts in public sector borrowing too, so we'll no doubt hear of cuts in public expenditure committments, but will that mean more jobs on the line?
It is going to be a very difficult budget as no matter what he does we are all going to end up paying more at some point. So I will be reviewing the budget with interest, both from a personal perspective and also to see how its going to affect my clients and their businesses.
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