How Sunak’s set to tackle cash crisis
EXTENDING FURLOUGH Likelihood: The £50billion job protection scheme is certain to be extended from its current end point on April 30. Extension likely to be until at least the end of June – and possibly September.
RAISE CORPORATION TAX
Likelihood: Rishi Sunak will raise the tax on business from 19 per cent to 20, and set out a ‘pathway’ to raising it to 23 per cent. But an exemption for entrepreneurs is possible.
INCREASING INCOME TAX
Likelihood: A manifesto pledge not to raise the headline rate will constrain the Chancellor. But he is expected to freeze income tax thresholds for three years, dragging 1. million into higher rates.
RAISING FUEL DUTY
Likelihood: Sources say Boris Johnson has vetoed the Chancellor’s plan for an immediate 5p hike. But Mr Sunak could try to introduce a smaller rise – and will signal his intention to end the ten-year freeze at some point.
TAXING SELF-EMPLOYED
Likelihood: Mr Sunak said last year that a bailout for selfemployed workers raised questions about their preferential tax treatment. Treasury sources played down reports he was planning an immediate hike on their National Insurance contributions.
LONGER STAMP DUTY HOLIDAY
Likelihood: The Chancellor is expected to extend the tax break on purchases of homes worth less than £500,000 in England and Wales from the end of this month – probably until the end of June. Experts believe it could generate an extra 200,000 sales.
TAX ON PARCELS
Likelihood: Ministers have already brought in a digital services tax on profits and are considering an online sales tax as part of a wider review of business rates. Sources played down reports of a new ‘green’ tax on online deliveries.
INCREASING CAPITAL GAINS TAX
Likelihood: Officials have examined bringing the tax on property and assets in line with income tax rates. But sources played down the prospect of immediate action this week. Equalising capital gains tax would see rates rise from 20 per cent on assets and 28 per cent on property to 40 per cent for higher rate taxpayers.