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Budget 2015: What to expect from George Osborne's last budget of the coalition

George Osborne will say the UK faces a "critical choice" at the election when he delivers his Budget today – but what do we know so far?

Depending on the election result in May, today could be Osborne's final Budget. Unsurprisingly, Twitter is clear of any patronising adverts highlighting the changes to beer and bingo taxes - the things working people enjoy, of course. But the newspapers this morning are swelling with leaks, announcements and juicy rumours. Here's a round up, for anyone (including us) too excited to wait:

Inheritance tax

In plans leaked to the Guardian, Osborne has drawn up blueprints that would allow parents to pass a main property worth up to £1m to their children without paying inheritance tax. This would reduce the inheritance tax bill on properties worth up to £2m by £140,000 with the Treasury concluding that the scheme would “most likely benefit high income and wealthier households.” Quelle surprise.

Power-generating lagoon

Helen Lewis spotted the first shameless reannouncement of today’s Budget: the world’s largest power-generating lagoon, in South Wales. Negotiations will be started on funding a £1bn initiative to produce electricity from turbines in Swansea Bay.

Personal Tax Allowance

Raising the personal allowance to £11,000 – giving 27m people a £200 tax cut. But as Tim Wigmore has reported, raising the tax allowance has already reached its limits for helping the poorest families. Once the personal allowance had reached £10,500, three million people had been taken out of income tax altogether.

Death of the tax return

The Telegraph has splashed this morning on the “death of the annual tax return”. It is expected that Osborne will use the Budget to announce a cut in unnecessary HMRC “red tape” Tax returns, the paper reports, “have been long considered an unnecessary burden for millions of people”.

A new shiny coin

This “long-term economic plan” is certainly under way: a new shiny 12-sided (!) pound coin will be unveiled. Featuring the “four symbols” of the UK: a rose, leek, thistle and shamrock. Sorry? The Chancellor announced the plans at the Budget in 2014 to replace the £1 coin because it has been increasingly vulnerable to counterfeit.
 

Photo: Twitter

Postgraduate Loans

Loans of up to £25,000 for PhD students from disadvantaged backgrounds in an attempt to convince more people to take up postgraduate research.

Savings Tax

The Independent believe they’ve found the biggest “rabbit” in today’s Budget: they say the Chancellor will abolish tax on income from savings for millions in a move to woo pensioners and “hard-working” people. In last year's Budget, Osborne announced that that 10 per cent tax on saving for people on low incomes will be abolished next month. This change will help an estimated 1.5m savers, many of them pensioners, according to the Indy.

Welfare

According to reports in the Daily Mail, the Chancellor will be announcing a welfare cap as he sets out more than £12bn in benefit cuts... and guess who will be affected the most? Read on... 

Young people

At the bottom of the list for a reason. No “goodies” or happy “rabbits” for the under-25s it seems. In fact, they are set to lose the right to housing and unemployment benefits if they refuse offers of work, training or education. It seems the controversial Tory grandee, Lord Tebbitt, whose ambition it is to make young unemployed people pull up ragwort for benefits, might be gleeful at the Budget today. 

Ashley Cowburn writes about politics and is the winner of the Anthony Howard Award 2014. He tweets @ashcowburn

 

 

Photo: Getty
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Gerald Kaufman dies aged 86

Before becoming an MP, Kaufman's varied career included a stint as the NS' theatre critic.

Gerald Kaufman, the Labour MP for Manchester Gorton and former theatre critic at the New Statesman, has died.

Kaufman, who served as the MP for Manchester Gorton continuously from 1970, had a varied career before entering Parliament, working for the Fabian Society in addition to his flourishing career in journalism and as a satirist, writing for That Was The Week That Was and as a leader writer on the Mirror. In 1965, he exchanged the press for politics, working as a press officer and an aide to Harold Wilson before he was elected to parliament in 1970.

Upon Labour’s return to office in 1974, he served as a junior minister until the party’s defeat in 1979, and on the opposition frontbenches until 1992, reaching the position of shadow foreign secretary. In 1999, he was chair of the Man Booker Prize, which that year was won by JM Coetzee’s Disgrace.

His death opens up a by-election in Manchester Gorton, which Labour is expected to win. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.