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| Tuesday, 16 April, 2002, 14:37 GMT 15:37 UK Budget Questions: an expert view ![]() 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. |
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