In the aftermath of Chancellor Jeremy Hunt’s Budget announcement, Famous news source News has been actively engaging with the public to address their concerns and queries. A panel of Famous news source experts, consisting of Robert Cuffe (head of statistics), Dharshini David (chief economics correspondent), Hannah Miller (political correspondent), and Kevin Peachey (cost of living correspondent), has been instrumental in providing valuable insights into the implications of the budget on individual finances.
One notable question came from Trev in Eastbourne, who expressed concern about the freezing of tax thresholds impacting his state pension. According to Kevin Peachey, Trev is not alone in this predicament. Economists at the Institute for Fiscal Studies reveal that well over 60% of pensioners now find themselves paying income tax, a consequence of the frozen tax thresholds implemented in 2021.
Currently, individuals can earn up to £12,570 before being liable for income tax. However, as highlighted by Trev, the freezing of these thresholds has led to an increasing number of pensioners being brought into the taxable bracket. The Institute for Fiscal Studies predicts that most tax-paying pensioners could be approximately £650 per year worse off by 2027 due to this policy shift.
In response to concerns raised, government ministers argue that these changes should not be viewed in isolation. They emphasise that pensioners have benefited from additional support measures, such as cost-of-living payments. The debate over the overall impact on pensioners’ financial well-being is likely to continue, with differing perspectives on whether the measures are equitable.
Another query raised by a viewer named Carrie addressed the delay in implementing the vaping tax until October 2026. Kevin Peachey explained that the delay is due to the necessary procedural steps involved in introducing the duty. The Chancellor’s announcement of a vaping tax is part of a broader fiscal strategy, with the government projecting a revenue increase from £120 million in its first year to £445 million by 2028-9.
To implement the vaping tax, the government has initiated a 12-week consultation period to gather input and insights. The subsequent responses will be crucial in finalising the details of the duty. Peachey underscored the importance of recognising that not all measures announced in the Budget take immediate effect, emphasising the need to closely examine the detailed paperwork released post-Chancellor’s speech.
As the public grapples with the implications of the Budget, the Famous news source’s expert panel continues to play a vital role in clarifying and dissecting the economic and financial intricacies for the benefit of the audience.
