What could we see in Rachel Reeves Budget
We're hearing from a Northamptonshire expert on what we could see in today's announcement from the Chancellor
As we prepare to hear from the Chancellor what taxes and benefits may change, a Northamptonshire mortgage and business specialist has been telling us what the biggest issues are when it comes to home buying and business.
Rachel Reeves has called for Labour unity ahead of her Budget later today.
Daniel Wyke, Managing Director of Wyke Financial and Wyke Business Protection offer advice on mortgages as well as business protection costs for things like sickness, and have offices in Corby and Wellingborough.
He is urging the Chancellor to think outside of incentives for first time buyers.
He says when it comes to affordability, a lack of 0% mortgages aren't the only issue facing first-time buyers:
"Lenders, when they're when they're looking at how much they can lend to a buyer, have to assess cost, in terms of the general cost of of owning a house and owning a property. And more often than not, they use national statistic data to do that. And they have certain government guidelines they have to adhere to as well. So obviously things like energy prices and obviously what's been happening with that, do play a huge part."
He says lowering energy costs would help all home owners.
Daniel is also concerned the rumoured mansion tax could hit family homes:
"I've seen a wide variety of spreads on what the mansion tax may come in at, but I have seen figures as low as £500,000. Well, that's suddenly actually going to impact a lot of people in the UK."
He feels many local businesses have suffered from recent taxes and wage rises affecting them, but feels private health incentives from employers to employees could be used to take pressure off the NHS.
What do we know will be in the Budget?
Minimum wage rates are to increase next year, giving a pay rise for millions of workers, the Government has announced.
From next April the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over, which the Government said will increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.
The National Minimum Wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour, narrowing the gap with the National Living Wage.
This will mean an annual earnings increase of £1,500 for a full-time worker.
Meanwhile The Financial Times has reported that the annual cash ISA limit could be reduced to £12,000.
A tourist tax could also be announced, with Mayors given the power to impose a "modest" charge on visitors staying in hotels, bed and breakfasts, guest houses and holiday lets.
There have also been many rumours about a so-called mansion tax. It reportedly could hit high-value properties with a new levy that applies to those worth more than £2 million.