Government help to recruit and retain older logistics industry workers and those workers hit by childcare costs could be delivered in next week’s Spring Budget, along with an extension to the 5p per litre cut in fuel duty, according to a leading tax expert.
Charlotte Sallabank, tax partner at international law firm Katten UK, said this week that measures due to be announced by Chancellor Jeremy Hunt in next week’s Spring Budget could include moves to tackle the UK’s skills shortages.
She said this strategy could see incentives offered to over-50’s and parents facing childcare costs to stay or return to the workforce – a move that could benefit the logistics industry.
Sallabank said: “A lot of the focus in next week’s Budget is likely to be non-tax related. Despite continuing pressure to do so from outside government, tax cuts are unlikely and the planned increase in corporation tax to 25% will probably go ahead.
“There may be incentives offered for over-50s to stay in or return to work and those incentives might include some tax incentives – such as lifting the pension lifetime allowance for senior key workers.
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She added: “There may be improved tax reliefs for childcare to get parents back into the workforce – there is currently no tax deduction for nannies’ salaries, which is possibly the most blatant example of double taxation and makes childcare financially unattainable for parents whose working hours are too long or too uncertain to allow them to commit to nursery hours, so leading to a fall out from the workforce.”
Sallabank said other possible measures that could be announced in the Spring Budget include an extension to the 5p per litre reduction fuel duty, introduced in Spring 2022.
However she added: “It is possible the government may seek to extend this reduction, although this would be directly opposed to the government’s net zero commitments.”