W
e are two months away from another budget and yet again there’s widespread worry, and entirely legitimate concern, about what might be coming down the track.
It is all very reminiscent of the panic we saw last year when the prime minister warned that the budget was going to be “painful” and then in the run-up his government refused to rule out nearly every tax-grabbing suggestion laid before them. Whether it was stripping widows of their council tax discount or taxing landlords who sold up; it was all left out on the table.
Fretting went into overdrive when it emerged that the Treasury had consulted the pensions industry on what might happen if it stripped savers of their full tax-free lump sum. Inevitably, fearful savers rushed to get their hands on their tax-free retirement cash. The policy never saw the light of day and many were left ruing their decision to withdraw their funds.
Publicly brainstorming tax-grab tactics is no way to prepare for a budget: all it does is spook the public into making damaging decisions.
