Pensions lifetime allowance could be frozen for another two years to 2027-28 at just over £1millionits current rate of £1,073,100.Capital gains tax reliefs and allowances, paid on shares and second homes, could be trimmed.Tax rates on share dividends could be increased and the tax-free allowance for dividends cut.Investment zones championed by Liz Truss abandoned.Inheritance tax threshold could be held in another 'stealth' revenue-raiser.Requirement for councils to hold referendum on tax increases above 2.99 per cent could be dropped. Top rate threshold could be reduced, or the rate itself could be increased from 45p to 50p.Income tax thresholds could be frozen for two more years until 2027-28, dragging millions deeper into the system.Questions over major investment programmes such as nuclear plants and HS2.Public sector pay could be capped at just 2 per cent next year.Two-year delay to the flagship social care costs cap.Apart from health, departments face spending allocations far below the rate of inflation.Government-subsidised cap on energy bills to be dropped for most from April.Benefits to be uprated in line with inflation, rather than the lower wages figures as had been mooted.Triple-lock on state pensions to be kept.However, Rishi Sunak said there was no option about 'putting our public finances on a sustainable trajectory', suggesting that otherwise there would be a repeat of the market meltdown that followed the disastrous mini-Budget.Īttending the G20 summit in Bali, the PM said 'difficult decisions' had to be made to keep interest rates down and prevent even more misery. In a letter, 28 MPs warned it 'would not be morally right' in the wake of school closures amid the pandemic. The Tory backlash to the cuts and tax rises is already under way, with dozens of Tory MPs slamming the idea of reducing education funding as 'indefensible'. Meanwhile, the requirement for town halls to hold a local referendum when they are bringing in council tax rises above 2.99 per cent is expected to be dropped - paving the way for bigger increases. Sources told the Mail that a £400 one-off payment reducing bills for all households this winter will not be repeated, leaving millions facing an average rise of £900 in total – an extra £75 per month. The estimated £3,000 energy bill cap from next spring is £500 above the current 'guarantee' introduced by Liz Truss, which was originally supposed to last for two years, and almost treble the £1,042 average in April 2020. The OBR is thought to have warned that otherwise by 2026-27 borrowing would be £70billion higher than was forecast in March. It will be part of an 'eye-watering' package of savings and tax rises to fill a black hole of up to £60million in the government finances. Millions of households face a cost of living crunch in April with average energy bills rising by £900 as the government's cap ends - and council tax almost certain to soar.Ĭhancellor Jeremy Hunt is poised to confirm the end of the blanket subsidies on energy prices when he delivers a grim Autumn Statement on Thursday.
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