UK Budget Preview: Schroders

Ahead of tomorrow’s UK budget announcement, Schroders’ European Economist, Azad Zangana, gives his views on what we can expect from the 2012 Budget

We expect the Chancellor to focus on growth measures that will not dent the exchequer.

The income tax threshold is clearly on the agenda, but in order to fund a cut in the top rate of tax, the Chancellor will have to find a way to recoup the losses to the exchequer (likely to be small) with other measures.

Rumours are rife that the Chancellor may reduce pension tax relief for higher earners.

The focus will remain on boosting growth and employment, but not at the risk of losing the UK’s credibility with investors.

We will also be issuing another quickview shortly after the budget is announced tomorrow.