Budget 2015: Osborne weighs up his options
CHANCELLOR George Osborne will say his economic plan is working as he delivers the most important Budget at lunchtime today.
With the General Election just weeks away and pollsters anticipating a close call, Osborne will be keen to woo voters with some limited tax cuts, although he has pledged there will be “no unaffordable giveaways” or “gimmicks”.
Reports suggest the Government’s finances may be boosted by a £6bn windfall as a result of low inflation and stronger economic forecasts.
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Alongside expected pension reforms, the Chancellor is likely to scrap the annual paper tax return, in favour of a drive towards digital records, and further increase the personal income tax allowance.
In a leaked extract from his speech, published by the BBC, he is expected to say: “The critical choice facing the country now is this: do we return to the chaos of the past? Or do we say to the British people, let’s work through the plan that is delivering for you?
“Today we make that critical choice: we choose the future. We have a plan that is working – and this is a Budget that works for you.”
His Budget statement comes against a backdrop of a strengthening economic recovery, with a rosier fiscal picture expected as a result of falling oil prices dragging down inflation.
Osborne will announce the independent Office for Budgetary Responsibility’s latest UK economic growth and borrowing forecasts for the coming years.
It is expected the OBR will report an improved growth forecast for 2015 – 2.7% compared with 2.4% – and revise down its borrowing figures, meaning the chancellor could have up to £6bn extra to play with.
Osborne is expected to raise the personal allowance from £10,600 to £11,000, at a cost of about £2bn and will again target tax avoidance.
