John
06-20-2010, 06:46 AM
Public sector workers and middle class benefits are expected to be targeted by Chancellor George Osborne's Budget on Tuesday.
The Chancellor will unveil a multi-billion pound package of public spending cuts and tax rises in what will be the first step in tackling Britain's record £155bn deficit.
Families bringing in as little as £30,000 a year are expected to lose their child tax credits while public sector workers earning more than £18,000 will see their pay frozen.
But the Chancellor will try to sweeten the pill with a £900m tax break to regions most dependent on public spending which are likely to be disproportionately hit by his austerity measures.
National Insurance contributions will be waived for the first 10 staff new firms outside London and the South East take on.
Smokers, drinkers and air passengers will also be targeted by tax rises.
Prime Minister David Cameron warned yesterday that public sector pay and pensions will be squeezed.
But he denied there was any agenda against public sector workers.
"There is no way of dealing with an 11% budget deficit just by hitting either the rich or the welfare scrounger," he said.
Child benefit payments to wealthier families should be scrapped, according to voters.
Some 53% of people quizzed for the Independent on Sunday said they opposed payments to well-off parents, which costs the taxpayer £11bn a year.
Lib Dem MP Bob Russell said policies which hurt the poor and vulnerable were unacceptable.
"I supported the formation of the Coalition through gritted teeth but I have never voted for big cuts to welfare benefits and I am not going to start now," he told the Mail on Sunday.
Capital gains tax on second homes and buy-to-let properties could be doubled by Mr Osborne - angering Conservative backbenchers.
And a much touted banks tax is expected too.
Business leaders have urged the Government not to raise capital gains tax.
The Chancellor will unveil a multi-billion pound package of public spending cuts and tax rises in what will be the first step in tackling Britain's record £155bn deficit.
Families bringing in as little as £30,000 a year are expected to lose their child tax credits while public sector workers earning more than £18,000 will see their pay frozen.
But the Chancellor will try to sweeten the pill with a £900m tax break to regions most dependent on public spending which are likely to be disproportionately hit by his austerity measures.
National Insurance contributions will be waived for the first 10 staff new firms outside London and the South East take on.
Smokers, drinkers and air passengers will also be targeted by tax rises.
Prime Minister David Cameron warned yesterday that public sector pay and pensions will be squeezed.
But he denied there was any agenda against public sector workers.
"There is no way of dealing with an 11% budget deficit just by hitting either the rich or the welfare scrounger," he said.
Child benefit payments to wealthier families should be scrapped, according to voters.
Some 53% of people quizzed for the Independent on Sunday said they opposed payments to well-off parents, which costs the taxpayer £11bn a year.
Lib Dem MP Bob Russell said policies which hurt the poor and vulnerable were unacceptable.
"I supported the formation of the Coalition through gritted teeth but I have never voted for big cuts to welfare benefits and I am not going to start now," he told the Mail on Sunday.
Capital gains tax on second homes and buy-to-let properties could be doubled by Mr Osborne - angering Conservative backbenchers.
And a much touted banks tax is expected too.
Business leaders have urged the Government not to raise capital gains tax.