Cocktail of spending cuts and tax changes could on the cards
interactive investor’s Myron Jobson comments on Rachel Reeves spending cuts.
29th July 2024 17:25
by Myron Jobson from interactive investor
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The chancellor let the axe fall on a number of spending pledges as part of efforts to plug the black hole in the public finances. The worst may be yet to come, as the chancellor issued an ominous warning that even more difficult decisions will be made in the Budget scheduled for the eve of Halloween [30 October]. As such, people should strap themselves in for further twists and turns in the personal finance landscape as the government pursues a new strategy to balance the books.
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“The scrapping of winter fuel payments for those not in receipt of pension credit or certain other means-tested benefits is a blow to struggling pensioners. Many pensioners rely on these payments to help with the costs of keeping their homes warm during the coldest months. Without it, some pensioners could face making the harrowing choice between heating their homes and buying essentials such as food.
“It is increasingly clear that a cocktail of spending cuts and tax changes could be on the cards to get the UK economy back on an even keel. Speculation over changes to capital gains tax, the pensions landscape, and inheritance tax is bound to heat up following the speech. As such, it is important for people to make as much use of current allowances as they can before any changes are made.”
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