Rishi Sunak says the government ‘can’t wave a magic wand’
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The Chancellor has previously warned of further squeezes on the public’s pockets to help the country “build back better” – with the £36 billion National Insurance raise already announced to begin next April. But as pundits speculate on the upcoming announcement, what other changes is the Chancellor expected to make?
Council tax increase
Under the Tory Government, council tax has risen every year for the past ten years.
If experience is anything to go by, it’s unlikely Mr Sunak will buck this trend and is rumoured to be raising council tax by up to five percent.
The move would push the annual council tax bill for the average band D property close to £2,000 per year.
READ MORE: UK tax warning: How much National Insurance payments could rise again
Rise in cost of alcohol
A pint of beer could become more or less expensive if the Chancellor chooses to overhaul archaic alcohol duties which began in the 1600s.
Changes could include standardising the different tax rates across alcohol types or raising alcohol duty each year in line with inflation.
Other options include varying rates depending on where alcohol is purchased, such as lower rates for pubs than supermarkets or vice versa.
Capital gains and inheritance tax changes
Experts have made suggestions about capital gains rates, signalling they could increase in line with the income tax.
This could lead to a rise from 28 percent to 40 percent for higher rate taxpayers.
Inheritance tax breaks could also be scrapped, such as the 100 percent exemption from on Aim shares.
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Pension pundits have suggested one way to raise significant fund would be to raid pensions by curbing tax relief on savings for higher earners.
They have also suggested capping the amount workers can put aside for their retirement.
However, such changes would be massively unpopular with much of the Tories key voter base.
University graduates threshold
Graduates could be facing losing hundreds of pounds off their income as the Chancellor is rumoured to lower the pay-back threshold for higher education loans.
Mr Sunak may change the threshold to around £23,000, down from £27,000 – a move that would raise roughly £2 billion a year for the Treasury.
The move would undo an earlier increase, which used to sit at £21,000, implemented under ex Prime Minister Theresa May.
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