Bill Dodwell, head
of tax policy at Deloitte, considers what tax measures the
Chancellor is expected to focus upon in the Budget on 21 March,
and what we already know is in the Finance Bill
2012.
Following a particularly tough 2011,
when growth was hampered by sharp rises in commodity prices and
events in the Eurozone, Chancellor George Osborne faces a
challenging environment for his 2012 Budget.
The Office for Budget Responsibility
forecast in November 2011 that tax receipts for 2011-12 would be
£554 billion, but public spending and investment (net of
other receipts) would push the UK into borrowing £127
billion. The Institute of Fiscal Studies forecast a slightly better
outlook in its Green Budget: tax receipts fractionally higher at
£555 billion, but a lower borrowing requirement of £122
billion. The January receipts and spending figures were positive,
which supports the lower borrowing requirement.
