BBC NEWSAmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific
BBCiNEWS  SPORT  WEATHER  WORLD SERVICE  A-Z INDEX    

BBC News World Edition
    You are in: UK: Wales 
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
England
N Ireland
Scotland
Wales
Politics
Education
Business
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
News image
BBC Weather
News image
SERVICES
-------------
News image
EDITIONS
 Tuesday, 16 April, 2002, 14:37 GMT 15:37 UK
Budget Questions: an expert view
Calvin Jones
Calvin Jones of the Welsh Economy Research Unit in Cardiff says low-paid workers should benefit from the Budget but higher earners face an increase in tax bills.

Given Gordon Brown's recent declarations on the importance of raising revenue, primarily for the NHS, there is little doubt that the 2002 Budget will be a tax raising one - possibly by as much as �5-10bn - although the Chancellor remains cautious about earmarking specific tax revenues for specific purposes.

The increase in taxes is likely to impact greatest on "middle Britain", for example with any potential increase in National Insurance (possibly by abolishing the upper limit) more likely to affect the rather better off.

On the face of it, this is better news for Wales than elsewhere, given our higher preponderance of lower wage earners and low income households.

Other potential tax increases - for example an increase in stamp duty on the sale of property - are also likely to affect the better off more.

On the other side of the coin, commentators feel the chancellor may sweeten the tax pill with a raft of tax credits for the worse off.

As much as �2bn may be given away through extensions to the working families tax credit, again good news for relatively poorer Wales.

Rural Wales may be slightly mollified should Gordon Brown freeze duty on petrol for a second year in the face of rising oil prices.

Smokers and drinkers throughout Wales may take heart from the notion, from PriceWaterhouseCoopers, that there is little point in raising taxes on booze and fags in the face of wholesale smuggling of these goods.

Click here to submit your Budget questions to Calvin Jones.

Hear the Budget speech and reaction to it on BBC Radio Wales this Wednesday from 1500-1800 BST with the Good Evening Wales team - click here to listen live online.


Key stories

Analysis

QUIZ

BUDGET DIARIES

AUDIO VIDEO

TALKING POINT
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Wales stories are at the foot of the page.


E-mail this story to a friend

Links to more Wales stories

© BBC^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes