Hammond considers ‘age tax’ raid for older workers
Most of the newspapers are reporting today that Chancellor of the Exchequer, Philip Hammond is said to be planning a Budget raid on older workers to pay for tax breaks for younger people.
According to the papers, the chancellor is examining ways to link tax to age in order to promote “intergenerational fairness” in next month’s Budget. It could see tax breaks being offered to workers in their 20s and 30s, which would be paid for by cutting reliefs for older and better off workers.
Many are concerned that those in their 20’s and 30’s are struggling with mounting debt, expensive housing and low wage inflation. With many millennials relying on the bank of mum and dad, there has been pressure to take action to combat the perceived current intergenerational unfairness.
The papers say the Budget, which is set to be revealed on November 22, will be a “bold” effort to “restack the deck for the next generation”.
Others however say that the policy is an attempt to win over the younger portion of the electorate, but say it could back fire and is likely to alienate some of their core supporters as the majority of those taking the burden of the extra taxes would be older Tory voters.
A fresh drive against tax-dodging by major companies is also expected to be announced. Meanwhile, the CBI is urging Mr Hammond to spend money on infrastructure and training to help the UK “grow our way out of austerity”. The group also suggests the chancellor eases the tax burden on companies by switching business rate hikes from the retail prices index to the lower consumer prices index. The Independent’s leader argues that whatever Mr Hammond’s plans are for tax and spending, he should be aiming to make the tax system less complex.
Any additional tax complexity is something that CPA members will not be happy to hear about. What we need is more simplification of the tax system not added levels of complexity. Small businesses already face huge hurdles in operating their payroll systems and do need an additional level of calculations and data collection to worry about. Neither do those older workers need another hit
The Daily Telegraph, Page: 1 The Daily Telegraph, Page: 10 The Independent, Page: 2 Independent I, Page: 4 The Times
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