Budget Report Expectations
According to a BBC News report Chancellor Darling is expected to increase taxes on alcohol, high polluting cars, and possibly a tax on flights.
The Budget report is due to begin at 1230 GMT. BBC News reports Darling will delay a fuel hike of 2p despite record-high crude oil prices. It is believed that the Chancellor is unlikely to make big tax cuts due to the current economic climate and strains on public finances. According to the Tories, "the government borrowed so much it cannot cut taxes to boost the economy." Meanwhile, the Lib Dems are predicting an 'economic storm' in the UK.
What is expected is a tax on flights to help reduce carbon dioxide emissions as well as taxing the least fuel-efficient vehicles by as much as £2,000 with a 'showroom tax'. A rise in fuel duty by 2p per litre was scheduled to commence on 1 April but is now being delayed by six months despite soaring fuel prices.
Among other announcements, supermarkets may be required to charge for disposable plastic bags. Alcohol duties are also expected to rise to help curb Britain's binge drinking culture. The Chancellor may provide help with rising energy costs for poorer families by limiting tariffs on pre-paid gas and electricity meters.
As reported by the Telegraph.co.uk, middle class families are already paying an extra £1,250 per year after a sharp rise on their tax bills. This increased tax burden is said to be the highest rise in any leading Western country in the past 5 years.
Comprehensive research shows that middle class families in Britain are paying £1,243 more on their tax bill than in 2002, based on a median yearly wage of £19,856.
Today's Budget Report expects to see the Chancellor actually raise the tax burden for millions more families. The Telegraph says measures introduced by Gordon Brown are set to be confirmed today which will raise taxes on the poorest of Britain’s households.
Shadow Chancellor George Osbourne said, "Here is proof that while the rest of the world is successfully reducing the burden on families, Alistair Darling and Gordon Brown are doing the exact opposite."
Published on March 12, 2008
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