The upcoming Budget, set to be presented by Chancellor Jeremy Hunt on Wednesday, will have implications for a variety of people in Wales, from business owners and holiday let landlords to parents and drivers. Here are five key issues to look out for:
Tax cuts are at the top of the Conservative wish list, with former Welsh Secretary Alun Cairns calling for a reduction in national insurance or income tax. However, we pay more in VAT than income tax in Wales, and income tax or national insurance cuts would not negate the fact that taxes overall are higher than they were at the time of the last general election.
The Welsh government and Plaid Cymru are advocating for more investment in public services, but the politics surrounding the budget may be complicated by the approaching general election. Although the Labour-run Welsh government wants more funding, the last time UK government cut national insurance, Labour did not oppose it.
Over 11,000 self-catering holiday lets exist in Wales, and the government’s furnished holiday lets scheme offers tax relief for landlords. However, the Sunday Times has reported that this scheme may be scrapped by Hunt. The Welsh government has already introduced changes to make it harder for holiday lets to be exempt from council tax.
More than 99% of businesses in Wales are small/medium sized, and they account for about two-thirds of employment, but many continue to struggle with costs. The Federation of Small Businesses wants the point at which businesses start paying VAT to be raised, as the current system “acts as a straitjacket to firms eager to expand”.
Fuel duty has been frozen since 2011 and is unlikely to change, but high pump prices in rural areas are a concern. If you are affected by any of these issues, please share your experiences with Have Your Say
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