The Treasury has confirmed that the newly appointed Chancellor George Osborne will present his emergency Budget on Tuesday 22 June, less than six weeks away after the new government has taken power.
Although a number of the government’s flagship tax policies were revealed in the Coalition Agreement there are many difficult choices that have yet to be made, for example whether or not VAT will rise. Entrepreneurs will also be eagerly awaiting details of the proposed increases in capital gains tax and the proposed reliefs.
Chris Sanger, Ernst & Young’s head of tax policy says:
“To help navigate these unchartered political waters, business leaders will be hoping that the emergency Budget will give a clear sense of direction to UK tax policy, by providing a framework to give both certainty and clarity in the short term and beyond. We need a regime that allows businesses the flexibility to take commercial decisions, without being hampered by the tax system’s complexities, and which encourages globally mobile executives to invest and stay in the UK.
He makes the point that the government will need to play a careful balancing act between reducing the deficit and enhancing the UK’s competitiveness as a place to do business.
For up to date news on the emergency budget keep Money Matters bookmarked in your favourites and visit the FT’s indepth page on the coalition government.