Increases in National Insurance Contributions for higher earners and a windfall tax on the oil industry, are just two of the stealth measures to raise money predicted by chartered accountants MacIntyre Hudson for Alistair Darling's first budget on 12th March.
Patrick King, Tax Principal at MacIntyre Hudson, comments: "Few Chancellors have inherited a worse combination of economic outlook and fiscal position. His predecessor was running a high budget deficit at the peak of the economic cycle, leaving no room for manoeuvre to cut taxes and stimulate the economy.
"Experience suggests tax revenues will fall off rapidly in any downturn, forcing tax increases just when any Chancellor would want to avoid them."
King adds that Gordon Brown handed Alistair Darling the ultimate hospital pass. With the new Chancellor's previous attempts to raise money through Capital Gains Tax and a levy on non-doms largely in tatters, his priority will be to raise money without damaging an already fragile economy.
MacIntyre Hudson's Budget Report odds table meanwhile is detailed below.
Evens: No non-dom stand down
Evens: Plastic bag tax
2-1: Increase in National Insurance Contributions for high earners
3-1: Windfall tax on oil and gas sector
4-1: Reduction of pensions tax relief for high earners
5-1: Increased VAT on luxury goods
8-1: Reintroduction of Car Purchase Tax
10-1: Changes to Corporation Tax payment structure
50-1: Reduced tax relief on redundancy pay
