.png)
.png)
A flurry of predictions as to what the 2008 Budget will hold is expected in the run-up to 12 March.
Among the first to offer its forecasts is accounting firm MacIntyre Hudson, which has warned that the Chancellor may resort to 'stealth measures to raise money'.
These, claimed the firm, will include an increase in the rate of National Insurance contributions above the upper earnings limit, from 1% to 2%.
Alistair Darling might also introduce higher supplementary rates, such as 3%, on earnings above £100,000, said MacIntyre Hudson.
Tax principal Nigel May commented: 'The chief attraction of this move is that it would only affect higher earners… so would not ruffle the feathers of core Labour voters.
'Any move is likely to be deferred for a year, demonstrating the Chancellor has a strategy to tackle the budget deficit without further depressing the economy at this critical stage.'
Mr May's company has also predicted that next month's Budget will see a rise in the threshold for stamp duty land tax, from £125,000 to £150,000 — and there will be the introduction of two new bands: 5% for property over £750,000, and 6% for property over £1m.
Tax principal Patrick King remarked: 'The progressive nature of this tax is attractive. Gifting first-time buyers and others struggling to maintain a foothold on the property ladder, while simultaneously targeting higher earners, enables Darling to raise taxes without rankling with the Labour old guard'.
The Chancellor will also adjust the payment regime for corporation tax, bringing companies with profits of more than £500,000 into the regime of quarterly instalments on account, said MacIntyre Hudson.
Nigel May added: 'True, a manoeuvre such as this would not bring in more money in the long term, as payments are balanced out at the end of the year - but [it] would bring in money to plug the budget gap in its year of introduction'.
Finally, the accountancy firm warned that Alistair Darling will announce a reduction to the maximum pension contribution eligible for tax relief (from £225,000 to £100,000), and reintroduce a car purchase tax similar to the one abolished in November 1992.
'With the momentum behind green taxation and the facts that car prices have fallen significantly in real terms and there is no longer a substantial British car industry to protect, the reintroduction of Car Purchase Tax could be an attractive measure for a Chancellor in search of revenue,' said Patrick King.
'A tax on plastic bags would also demonstrate green credentials while raising revenue.'
