Giveaways may be in offing amid upcoming pre-election UK budget

(Alliance News) - UK Chancellor Jeremy Hunt's spring statement will look to capture floating voters as it delivers "sweeteners", ahead of a general election.

Hunt on Wednesday announced that a spring budget will be delivered on March 6, in what could be the government's last chance to make pledges on housing and taxes, as Prime Minister Rishi Sunak struggles to regain the confidence of voters.

Hargreaves Lansdown analysts predicts a slew of measures, set to include reform to inheritance tax, cuts to fuel duty and income tax, and help for first-time buyers.

The Times reported that, when asked whether promises will be made for more help to first-time buyers, Housing Secretary Michael Gove said: "Oh, yes, we must. Definitely."

Hargreaves Lansdown analyst Susannah Streeter commented: "New offers for prospective homebuyers will be aimed at boosting Conservative support among younger voters. A new version of the Help to Buy scheme may be resurrected or efforts made to enable more potential buyers to access long term mortgages with low deposits, similar to initiatives in the US."

Similarly, on inheritance tax, Hargreaves Lansdown forecasts that the government is likely to set out cuts to the levy, with some reports suggesting that the tax could be scrapped in its entirety.

Streeter commented: This will again draw criticism that this will favour those who are better off at a time when people continue to struggle through the cost-of-living crisis.

"However, it is certainly a tax in need of reform, and it is highly likely to be targeted for upheaval in March."

Meanwhile, fuel duty and income will both face potential cuts, with fuel "a difficult measure to wear politically, because fuel duty has been frozen since 2011", according to Hargreaves Lansdown.

Sarah Coles, an analysts at the fund supermarket, said: "A potential cut in the rate of income tax was widely trailed ahead of the autumn statement, but didn't happen. It's very possible the chancellor is keeping this up his sleeve as a late present in March...A cut in basic rate income tax - say from 20% to 19% - would put more money in people's pockets."

Streeter added: "While reams of discarded festive paper are heading for the recycling bins, Jeremy Hunt will be preparing to wrap up his own pre-election giveaways in the spring budget. The date has been set for March 6, an earlier date in the month than usual - and that's fuelling speculation that a general election could come as soon as May."

By Harvey Dorset, Alliance News reporter

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