What we know so far

RISHI Sunak, the Chancellor of the Exchequer, is set to reveal his new budget for the 2022-2023 tax year today.

Many of the budget’s contents – such as an increase in the minimum wage and an increase in national insurance – have already been revealed or leaked, but there may still be some surprises.

Announcements made so far:

» Minimum wage increase: Both the national minimum wage and the national living wage – essentially the minimum wage for those aged 23 and over – are to increase.

The living wage will go from £8.91 per hour to £9.50, a rise of 59p (6.6%). For those aged 21 and 22, the minimum wage will rise from £8.36 an hour to £9.18, while the figure for apprentices will go from £4.30 to £4.81 per hour.

» National Insurance increase:

An increase in national insurance contributions - both for employers and employees - was announced in September. Workers and their employers will each have to pay an extra 1.25% from April 2022.

» 75 local authorities will reportedly be given funding to set up “family hubs” – one-stop-shops for people to go to for advice and guidance.

The Treasury has reportedly committed £82 million to the plan, in addition to £100m for supporting mental health of new parents, £50m for breastfeeding support and antenatal classes,

Family hubs and support:

and £200m for helping vulnerable families who face complex issues.

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Freeze on the personal allowance on income tax:

Income tax’s personal allowance – the amount we can earn tax-free before having to pay tax on the rest – is to be frozen at £12,570 until 2026. It means that, with inflation, we will all end up paying more tax.

The higher rate threshold – the point at which one must start paying the higher rate of 40% tax – is also staying put for five years at its present level of £50,270.

» NHS backlog fund: The Treasury has offered the organisation a one-off outlay of £2.3 billion to set up a network of community diagnostic centres. These hubs will provide rapid access to scans and tests.

A further £1.5bn will go to creating surgical hubs in hospitals to clear surgery waiting lists, while £2.1bn has been set aside to improve IT systems and digitise patient records.

End to public sector pay freeze:

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The chancellor will reportedly announce an end to the freeze on public sector pay, brought in after heavy spending during the pandemic.

» New house-building tax: The chancellor reportedly plans to introduce a new tax on housebuilders with profits over £25 million.

» Court funding: Reports say £1 billion will be committed to help the court system clear the backlog from the pandemic.