Budget for individuals and green lobby
Osborne to unveil end of tax return and new tidal energy plan
George Osborne will today unveil a mixed package of support for taxpayers, together with an ambitious plan to create Britain’s first tidal lagoon which will form part of the government’s new vision for powering the country.
In a Budget expected to be largely political because of the looming General Election, the Chancellor will use a £6-10 billion windfall to confirm a number of well-trailed measures to help the oil industry, savers and pensioners. He is also expected to confirm an increase in the basic income tax threshold.
But as The Guardian reports, he will also offer £1 billion to support a tidal energy plan in South Wales. This may be seen as a gesture of support for renewable energy to offset any criticism that may be forthcoming from the green lobby for his expected concessions to the North Sea oil industry.
Mr Osborne is forecast to introduce new investment allowances to encourage and maintain investment in the North Sea oil and gas industry.
He is also expected to scrap the need for taxpayers to fill in an annual return, removing a burden from millions of taxpayers and small firms.
Other changes include new rules on ISAs to allow savers to invest in crowdfunding schemes, though the annual tax-free allowance is unlikely to change.
The basic income tax threshold is expected to rise from £10,600, due to kick in from April, to £11,000 or even £11,500. This will be seen as a move to persuade lower paid workers that the Conservative party is not a party for the rich.