“Next week’s Budget is eagerly anticipated however one has to wonder, given the range of leaks already emanating from The Treasury, how much of the Coalition Government’s economic policy is focused on genuine plans for growth, and how much is actually aimed at winning votes?
“This is hugely disappointing especially when you consider that the next general election is over three years away, barring any seismic changes in the current arrangement.
“As stated, it’s possible to get a clear idea already of the way the shape the Budget is likely to take.
“I have no doubts that we’re likely to see the 50% tax being retained despite its erosive presence – all the speculation around the mansion tax is, in my opinion, just speculation and there will be no need for such a policy if the 50% rate is retained.
“I also suspect we will see a tax-free zone to £10,000 because it’s been one of the central tenets of Liberal Democrat policy despite the tax breaks and top-ups already offered to the lowest earners.
“From a mortgage and housing market point of view, the loss of the stamp duty holiday at the lowest level would be a real blow.
“Although it is consistently attacked, the UK housing market is the backbone of the economy currently.
“However, its importance can make it seem like a ‘cash cow’ for any government and therefore I wouldn’t be surprised at all to see a tycoon tax introduced with say a 6-10% stamp duty on properties over £5m.
“It would be a shame as people forget these boundaries never move so will eventually affect vast numbers in years to come.
“This Budget will above all else look to close loop holes.
“It’s popular amongst the rich-bashing brigade and as a result wins votes.
“The sad reality however is that when one loop hole closes others are opened so it is often nothing more than boastful political rhetoric and costly at that.
“The top 10% of earners already contribute more than their fair share and without their spend the UK economy would be in a far darker state.
“Finally, we've seen this week yet another government scheme to 'boost' first-time buyers – NewBuy - which offers first-timers the chance to own a new-build with a 5% deposit.
“Like many, I simply wish that they would leave the housing market alone as such schemes never succeed and one should never try to manipulate a tried and tested market.
“We appear to have forgotten the fact that it’s not a God-given right for people to own property – we need only look at the comparative ownership levels in Europe to see this - and the Government should not be massaging the market in order to try and artificially inflate the numbers who can.”
