When is the Budget 2022? Predictions, time and what will Rishi Sunak say

CHANCELLOR Rishi Sunak is expected to announce his latest Budget in the coming weeks.

But what can Brits expect from the financial update?

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The government is under pressure to use the announcement to help struggling households who have been hit by rising energy bills and an increase in the cost of living.

When is the Budget?

The government has asked the Office for Budget Responsibility, Britain’s independent budget office, to produce new forecasts on 23 March.

On that day it will release the latest outlook for the economy and public finances.

This suggests chancellor Rishi Sunak is likely to deliver his mid-year Spring Statement update on that day.

What is the Budget?

The Budget is when the Government outlines its plans for tax hikes, cuts and things like changes to Universal Credit and the minimum wage.

It’s different to the Spending Review, which sets out how much public cash will go towards funding certain departments, devolved governments and services, such as the NHS.

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The Budget is read out in the House of Commons by the Chancellor of the Exchequer. It will be Rishi Sunak‘s third Budget as Chancellor.

Because it has been billed as a Spring Statement, this is likely to be a mini-Budget, and may not be as detailed as a full Budget.

It functions more as an update on finances, and rarely includes any major tax or spending changes, although it can be used to tweak some policies.

What can we expect from the Budget 2022?

The latest public finance figures suggest that the government is firmly on track to borrow less this tax year than forecast.

This could mean that the Chancellor announces some measures to help people through the energy crunch and lower the tax burden.

We may see some tax cuts and other help for households introduced.

The government has already said that it will provide a £200 rebate to help with energy bills, and some households will qualify for a £150 council tax refund.

But surging inflation, which leads to rising costs on government debt, might mean that Sunak won’t do much to ease the current cost-of-living crisis.

Pensioners could face another squeeze this year.

In last year’s Budget, Sunak froze the pensions lifetime allowance for five years, meaning up to two million savers will pay a 55% tax charge.

He also froze income tax, inheritance tax and capital gains tax thresholds.

Now tax experts say he may come back for more in his spring 2022 statement in order to help shore up the nations finances.

He could go after pensions tax relief, for example, in order to raise more money.

Currently, you can get tax relief on private pension contributions worth up to 100% of your annual earnings.

Ditching or reducing this benefit would result in more money for the Treasury.

Elsewhere, Labour has called on Rishi Sunak to reverse the government’s planned 2.5% hike in National Insurance contributions.

Shadow chancellor Rachel Reeves said last month that Sunak still has time to halt the controversial rise before it comes into effect in April.

But last week, Sunak and Boris Johnson ruled out a reversal on the tax hikes.

Last year, Sunak introduced measures including extending the Universal Credit £20 a week boost, increasing the National Living Wage by £345 a year, extending the stamp duty holiday, and giving self-employed people another £7,500 grant.

This post first appeared on thesun.co.uk