Osborne to unveil second Budget 2015 on July 8th

George Osborne will unveil a Budget to put in place some of the Tories’ manifesto pledges this summer – on Wednesday July 8th.

The chancellor told BBC reporters outside 11 Downing Street that “working people” would be at the heart of what will be his seventh annual Budget.

He meanwhile admitted to The Sun that it was “unusual” to have two Budgets in a single year, but said he “didn’t want to wait” to turn his party’s election promises into a reality.

He said much the same in Downing Street, where reporters learnt that he plans to unveil measures to boost productivity, living standards and the UK finances.

In fact, Mr Osborne’s first Conservative Budget will seek to balance the party’s manifesto pledges against the UK’s £57bn budget deficit and £12bn of incoming welfare cuts.

Carrying on “the balanced plan to deal with our debts,” as pledged by the chancellor on his doorstep, suggests he will press on with tax avoidance proposals, or specify their return.

A survey today indicates he will face little opposition from the business community -- specifically to his plan to raise over £5bn from targeting evasion and “aggressive” avoidance.   

In particular, almost nine in ten Institute of Directors’ members -- the majority of whom are SMEs -- say they support the government’s plan to clampdown on tax avoidance.  

But in line with an analysis by the IFS, the IoD members are sceptical about how much the measures will raise; not even 15% of them are ‘confident’ the envisioned £5bn is achievable.

The firms will be less keen on a plan to put a surcharge on company dividends for higher and additional rate taxpayers, which one expert reportedly sees as a prospect if CGT is left alone.

Floated to the FT by Andrew Collins, tax partner at Charles Russell Speechlys, the surcharge would hit those on effective tax rates of 32.5% and 37.5%, respectively, who use PSCs.

It coincides with a list of 23 things SMEs want from Mr Osborne (including some promised already); who says his summer Budget ‘15 will “put Britain in good shape for the long term.”

Editor’s Note: Related Reading –

Two ex-bankers hired to sign off contractor policies

Contractor sector makes early demands of Cameron

Cameron vows to help one-man bands


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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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