Overview
- The decision to scrap rate rises was sent to the Office for Budget Responsibility on Wednesday in a submission of major measures, according to multiple reports.
- Treasury plans now include extending freezes to income tax thresholds beyond 2028, with estimates suggesting roughly £8bn in extra revenue.
- A proposed levy on limited liability partnerships has been abandoned after modelling showed it could backfire, and an exit or settling‑up charge is reported as uncertain.
- Ministers are preparing restrictions on salary sacrifice benefits, including a cap on Cycle to Work purchases and potential limits on pension salary‑sacrifice relief, drawing warnings from the Association of British Insurers about reduced saving.
- Downing Street has been courting senior executives ahead of the Budget as opponents condemn the U‑turn, while officials weigh targeted options such as higher gambling levies and taxes on high‑value properties.