Budget outlook 2020
Updated: Feb 26
The new Chancellor, Rishi Sunak, has confirmed that the budget will be delivered as planned on March 11. This does not leave great deal of time for him to prepare for many major announcements as he was appointed only on February 13 following an unexpectedly dramatic government reshuffle which saw the previous Chancellor suddenly leave his post.
What can we expect? A number of ideas seem to have been floated in recent weeks in the press to test the waters or alternatively create false leads. What is very clear is that we can expect increased spending on infrastructure, the NHS and in the North of England. This so called "end of austerity" spending spree is now clearly expected following the election success of the ruling Conservative party.
Since the election the decision to commit to the expensive HS2 railway line has clearly demonstrated that is where spending will be focused; towards the North and on infrastructure. We are told to expect a number of new "free" ports in England that will be created to reduce the taxes and duties in an attempt to reinvigorate regional economies.
The suggestion being that after leaving the European Union, the Government wants to accelerate growth and bring about economical structural changes and believes that this is best achieved by public spending increases. The consequence of all this will undoubtedly an increase in the UK National Debt as already the Government is running a small budget deficit and this deficit looks likely to increase dramatically. Anyone looking for significant tax cuts, for example covering inheritance tax and stamp duty, is going to be, in my opinion, very disappointed.