Articles - Schroders- Budget 2012 preview

 Ahead of tomorrow's budget announcement, Schroders' European Economist, Azad Zangana, gives his views on what we can expect from the 2012 Budget:

 
•   We expect the Chancellor to focus on growth measures that will not dent the exchequer.
 
•   The income tax threshold is clearly on the agenda, but in order to fund a cut in the top rate of tax, the Chancellor will have to find a way to recoup the losses to the exchequer (likely to be small) with other measures.
 
•   Rumours are rife that the Chancellor may reduce pension tax relief for higher earners.
 
•   The focus will remain on boosting growth and employment, but not at the risk of losing the UK's credibility with investors.