Chancellor Jeremy Hunt is being tipped to cut business taxes in his Autumn Budget this week.
Improved public finances mean that the government has about £25billion of headroom to play with when he makes his speech on Wednesday, compared with £6.5billion at the time of March’s budget.
He is likely to extend “full expensing” — a tax relief allowing businesses to offset their investments against corporate tax — having concluded that the policy is less inflationary, and expensive, than previously thought. The threshold at which businesses pay VAT could also be increased from £85,000 to £90,000.
|
