Low income couples could get £2,500 in emergency Budget this Friday

Low income couples could get £2,500 boost in emergency Budget this Friday

  • Couples could save thousands through the new plan if announced on Friday 
  • The emergency budget on Friday will also reverse the rise in National Insurance 
  • Chancellor Kwasi Kwarteng will also scrap the cap on bankers’ bonuses  

Millions of low-income couples could get a £2,500 boost in Chancellor Kwasi Kwarteng’s emergency Budget on Friday. 

A plan put forward by Liz Truss would allow the transfer of all personal tax allowances between married couples and civil partners when one earns less than £12,570.

This means low-income couples can send £1,260 in allowance, saving £214 in tax – a figure that could rise by ten times, the Sunday Mirror reported.  

However, Kwasi Kwarteng may delay the move until the full budget is announced later in the year.  

Kwasi Kwarteng will make an emergency tax-cutting ‘mini Budget’ this Friday to deliver on Liz Truss’s leadership campaign pledges

This week’s emergency budget will see Rishi Sunak’s national insurance rise, freeze corporation tax and scrap the cap on bankers’ bonuses.    

The Chancellor is also expected to detail how the government will fund the planned £2,500 cap on energy bills over the next two years.  

Jon Hickman of BDO UK auditors told the Sunday Mirror: ‘Truss’s proposed sweeping tax cuts will leave large holes in the public finances.’ 

The removal of the national insurance rise and corporation tax freeze will cost the public purse £30 billion alone. 

There is also a suggestion the minimum wage could be raised to £10,50, although unions have said it should be as high as £15 an hour.

TUC boss Frances O’Grady said: ‘Tax cuts will do nothing to jump- start the economy. 

‘Those who profited from this crisis should pay a fair share – with a bigger windfall tax on oil and gas giants and new taxes on wealth.’   

Pensioners should see the benefit of at least a 10 per cent uplift next year with the return of the triple lock, meaning pensions will be raised in line with inflation.

Helen Morrissey, of Hargreaves Lansdown said pension are ‘in line for a record increase as long as the Government keeps its pledge on the triple lock.’

Source: Read Full Article