As the nation struggles to survive during this tough economic time, all eyes are on Chancellor of the Exchequer, Jeremy Hunt, ahead of his second major fiscal statement during his tenure. The Budget announcement is set to be delivered on 15 March, with a slightly more favourable outcome than previously predicted, thanks to falling energy prices and higher-than-expected tax revenue.
This does not constitute advice and advice should be sought in all instances before acting on it.
However, there are a few outstanding factors, such as the lack of major tax cuts and long-term policy changes, that will contribute to the Office for Budget Responsibility’s growth forecasts, which will in turn impact the Chancellor’s ability to spend. So, what can we expect from the upcoming Spring Budget?
Areas of focus:
Chancellor Hunt’s statement will likely focus on how the government plans to reduce inflation and public debt while increasing economic growth, but are there areas of particular interest for medical professionals and dentists?
One of the key areas of focus will be employment, more precisely, increasing it since unemployment is one of the biggest barriers to economic growth. Unemployment is of course an issue for productivity but with a reduced workforce, employers end up paying higher wages to staff willing to work, which in turn, causes businesses to increase prices. Hunt will target early retirees and attempt to get them back to work through new and improved government measures and tax incentives, one of which is lifting the pension lifetime allowance for senior doctors.
In addition, the Chancellor is expected to provide support for energy costs in the form of price caps and fuel duty cuts and strengthen the public sector with pay raises to stop and prevent any further strikes, amongst other potential announcements.
Be sure to keep an eye out for a summary of key points of the Budget following the announcement and then schedule a meeting with your financial advisor to review any changes your financial plan may need as a result.