Budget  

Chancellor 'cracking on' with Budget date

Chancellor 'cracking on' with Budget date

The newly appointed chancellor has confirmed the upcoming Budget will proceed as planned on March 11, promising it will "unleash the country's potential". 

In a post on his Twitter page today (February 18) Rishi Sunak said he was "cracking on" with preparations for his first Budget, adding: "It will deliver on the promises we made to the British people – levelling up and unleashing the country’s potential."

It follows comments made earlier this week by transport secretary Grant Shapps which hinted the new Chancellor of the Exchequer may want more time before his Budget debut. 

Mr Sunak ascended to the position of chancellor last week when Sajid Javid stepped down from the role amid reports he refused to fire his team of advisers as requested by the prime minister.

Mr Sunak, who is the MP for Richmond in Yorkshire, was previously chief secretary to the Treasury under Boris Johnson. 

The tapered allowance, pension contributions and IR35 reform have all featured on the advice industry's wish list for the Budget next month, with reports the new Chancellor is believed to be more willing to align with Number 10's wishes than his predecessor. 

Before his abrupt exit last week Mr Javid also told the Financial Times he was considering cutting pensions tax relief for high earners in his Budget plans, in a bid to make the the system fairer for those on lower incomes.

Under current rules tax relief is paid on savers' pension contributions at the rate of income tax they pay.

This system costs the Treasury almost £40bn a year in lost income tax revenue but cutting tax relief on pension contributions to 20 per cent, rather than the 40 per cent enjoyed by higher earners, could help raise £10bn a year.

rachel.mortimer@ft.com 

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