UK Finance Minister Jeremy Hunt is likely to unveil tax cuts in the Spring Budget, utilizing a small fiscal windfall ahead of the General Election.
Facing political pressures, the Conservative government aims to stimulate voter appeal while navigating economic challenges.
Treasury plans include productivity boosts and R&D funding, with economists predicting a focus on supply-side tax adjustments, particularly in national insurance contributions.
1. Jeremy Hunt to announce tax cuts in the Spring Budget before the General Election.
2. Conservative government seeks voter appeal amid trailing poll numbers.
3. Treasury plans include productivity boosts and £360 million for R&D projects.
4. Economists anticipate tax cuts, focusing on supply-side measures like national insurance contributions adjustments.
5. Expectations of increased fiscal headroom, with estimates ranging from £13 billion to around £18.5 billion.
6. Deutsche Bank forecasts a net loosening of £15 billion in the coming fiscal year, dropping to around £12.5 billion in the medium-term.
7. BNP Paribas economists project a more modest £10 billion tax cut package for the 2024/25 fiscal year.
8. Anticipation of a fiscal windfall, possible fuel duty postponement, and a permanent reduction in the basic rate of income tax.
