What to expect from the Budget next week from energy bills to fuel duty – and what it means for your money
NEXT Wednesday Jeremy Hunt will finally reveal the government’s Spring Budget.
In the Commons chamber, the Chancellor will announce how much the price of booze and cigarettes will change.
And he’ll let Brits know of any new benefits, bill support packages and tax hikes.
The Treasury keeps a tight lid on policies due to be announced in the highly-anticipated budget.
Changes can be made right up until the last minute, and nothing receives final confirmation until the day before.
Mr Hunt has told Tories he will “put meat on the bones” of the PM’s plan to fix the economy.
He said: “The best tax cut right now is a cut in inflation.
“We have a plan, there are early signs it’s working, and we need to stick to it and not rock the boat.”
Treasury sources have given The Sun a flavour of what to expect.
Here’s what to look out for next week and what it means for your money.
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Energy bill help
Mr Hunt is poised to extend the current Energy Price Guarantee until July.
Energy bills were due to soar from £2,500 to £3,000 next month.
But lower than expected borrowing has left room for the cap on gas and electricity costs to be extended.
Thankfully from July, when the price guarantee ends, it’s expected bills will fall to £2,000.
Cigarette prices
Smokers face the biggest ever price hike in fags next month as Mr Hunt prepares to raise tobacco duty – with a pack of 20 going up by £1.15.
Industry insiders are bracing for taxes on cigarettes to increase with inflation.
Hiking fag levies with 12.7 per cent RPI – plus an extra minimum 2 per cent bump applied to tobacco products – means a pack would jump by more than 15 per cent.
It would see a 30g pack of hand rolling tobacco rise by £2 thanks to higher rates.
Booze duty
Booze duty will be frozen until August in a major win for pubs and brewers.
Hated alcohol levies were due to be hiked on February 1, but the Chancellor will delay that move for an extra six months until August 1.
Fuel duty
The Treasury is under huge pressure to keep the popular 12-year fuel duty freeze.
And the Chancellor is also being lobbied to keep the 5p cut.
The Treasury remains undecided on both policies – and officials in No11 are said to be concerned by the £6bn per year price tag.
Yesterday ex-Home Secretary Priti Patel piled pressure on MrHunt to CUT fuel duty to help hard-up motorists to boost Britain’s economy.
She called on the Chancellor to “go further” where the Government has extra headroom to slash eye-watering fuel taxes and create growth.
The Sun’s Keep it Down campaign has forced ministers to freeze duties for 12 years in a row.
Ms Patel said: “We have to be the Government on the side of hard-pressed motorists, who are really feeling the pinch right now.
“We should be going further – where the Government has the head room, cut fuel duty.
“We need to put more money back into the purses and wallets of the Great British Motorist and do everything we can to support them.
“You can only grow the economy by putting more money back into people’s pockets, not by taking money out of them with higher taxes.”
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Corporation tax
Corporation tax will rise to 25%, despite protestations from a number of Tory MPs.
The Chancellor has told MPs that the UK will still have lowest rate in G7, and that 70% of businesses won’t see any increase whatsoever.
Only 10% of large corporations will end up paying the full 25%.
Income tax and national insurance
Income tax and national insurance will remain at current levels.
Despite loud calls to slash taxes from free market Tories, Mr Sunak and Mr Hunt have said cuts will on fan the flames on inflation.
However, the PM has vowed to cut personal taxes as soon as the economy gets into better shape.
Universal credit
Benefits and Universal Credit payments will rise in line with last September’s inflation rate of 10.1% in April.
Costing £11bn, the move will help 10million households, after Mr Hunt said that he was committed to “protect the most vulnerable”.
The chancellor said those on Universal Credit will benefit by around £600 a year.
The Department for Work and Pensions usually uses September’s inflation figures to make the decision on uprating benefit and pension payments from the following April.
And an increase in line with inflation is designed to help people keep up with rising prices.
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Cost of living support
Around 8 million households will receive a £900 cost of living payment in April.
The support is part of a £26billion package announced by the government to help people with soaring prices.
Unlike last year’s help, this cost of living payment will be paid in three, not two, instalments.
There’s no need to apply for the help – instead, the DWP will be in touch.
Pensions
As with benefits, pensions will be hiked in line with inflation from April.
State pensioners will receive £203.85 per week – up from £185.15 in 2022/23.
The Pension Credit standard minimum guarantee (delivered by the Guarantee Credit) will also increase by 10.1% in line with CPI inflation, to £201.05 per week for single claimants and £306.85 per week for couples
Back to work drive
Mr Hunt will announce a major plan to drive millions of economically inactive Brits back to work.
The package of policies will focus on the long term sick, those with short term illnesses, early retirees and those on welfare.
It’s expected to be a “carrot and stick” approach.
A source said: “Those who can work, will. Those who can’t, we will always help.”