Budget WILL happen on March 11: New Chancellor Rishi Sunak rules out delaying crucial financial package in wake of Sajid Javid quitting – amid claims higher earners could be stripped of 40% pension tax relief
- New Chancellor Rishi Sunak confirms that the Budget will go ahead on March 11
- Boris Johnson and Mr Sunak will meet to discuss upcoming package tomorrow
- The Treasury has now drawn up plans for a £10billion raid on pension tax breaks
- Proposed changes would mean everyone would get 20% pension tax relief
New Chancellor Rishi Sunak today declared the Budget will go ahead on March 11 despite the abrupt departure of Sajid Javid.
Mr Sunak killed off rumours of a delay saying he was ‘cracking on’ with preparations for the crucial financial package.
Downing Street had previously signalled that the Budget could be pushed back after the dramatic resignation of Mr Javid during the reshuffle last week.
The confirmation came amid claims higher earners could be stripped of their 40 per cent pension tax relief.
Mr Sunak and Mr Johnson are meeting for talks tomorrow to flesh out the measures to ‘level up’ the UK economy.
However, Tory MPs are already uneasy about some of the proposals being floated, including imposing a ‘mansion tax’ on the most expensive homes.
Mr Sunak killed off rumours of a delay saying he was ‘cracking on’ with preparations for the crucial financial package
Boris Johnson is set to meet with his new Chancellor to discuss plans for the economy
The Treasury has now drawn up plans for a £10billion raid on pension tax breaks, which would see retirement savings pots set at the same rate for everyone.
Currently higher earners get 40 per cent tax relief on pension contributions, compared with 20 per cent for lower earners.
But the proposed changes would mean everyone would get 20 per cent pension tax relief.
Mr Javid is thought to have been resisting the idea, which has been frequently floated ahead of Budgets in the past but has never been pushed through.
It comes as Mr Javid waded into a Conservative row over the prospect of tax rises in his successor Rishi Sunak’s forthcoming Budget.
The former Chancellor nailed his colours to the mast by ‘liking’ a tweet warning that Britain is already ‘overtaxed’ with the highest tax burden for a generation.
His intervention came amid concerns on the Tory benches over hints that Boris Johnson wants next month’s Budget to mount a tax raid on Middle England.
There have been rumours of a squeeze on savings tax relief, a mansion tax or the creation of new council tax bands for expensive homes.
Mr Javid, who resigned as chancellor in Thursday’s reshuffle rather than fire his team of aides, stepped into the debate via Twitter.
New Chancellor Rishi Sunak and Boris Johnson are set to meet to to discuss next month’s budget
He liked a comment made by blogger Paul Staines, also known as Guido Fawkes, that read: ‘Needs constant restating, the tax burden is the highest it has been for a generation. Britain is overtaxed.’
A source close to Mr Javid said: ‘He is on the record many, many times as being a low-tax Chancellor.’
Former Cabinet minister John Redwood said that instead of tax rises the Government should be drawing up a list of targeted tax cuts, including stamp duty, to stimulate growth.
He said: ‘You cannot tax people into prosperity. You do not make the less well-off rich by taxing entrepreneurs to take fewer risks and run fewer businesses.’
Mr Sunak, the new Chancellor, is understood to be considering delaying the Budget beyond the currently announced date of March 11.