Budget update: £12bn worth of cuts, new adoption rules and BBC overhaul

Here are the leaks and rumours ahead of Wednesday’s summer Budget

After sweeping to victory in May, the Conservatives will now deliver the first all-Tory Budget since 1996.

Osborne has already claimed his budget will put Britain on the path to becoming a “lower welfare, lower tax, higher wage” country.

Here is what we know will be in it.

Major cuts

Osborne is promising to make an incredible £12bn worth of cuts to the welfare bill. The vast majority of these cuts will be to tax credits and housing benefit, which will hit the working-age poor. Under the current tax credit system, means-tested parents working over a certain number of hours per week are entitled to additional support of up to £2,000. This is expected to be slashed.

In a measure to counteract some of the effects this will have, Osborne is also promising tax cuts to those on middle and lower incomes.

Close tax-avoidance loopholes

Osborne is also hoping to find £5bn through a programme of closing tax loopholes exploited by big business and the rich.

Top rate tax cut?

There remains speculation as to whether Osborne will offer a tax cut to those earning over £150,000 a year. Many in his party are becoming impatient, saying that if he doesn’t do it now, then he must do it at the next opportunity. But the move will jar with the wider public given the huge cuts being made to benefits for the working poor.

Adoption

Osborne will put £30m into the adoptions process, with the aim of speeding up finding adoptive parents for children in care across the UK.

Prime Minister David Cameron said: “I am determined to tear down the barriers to children in care being found loving adoptive parents. The average time it takes to place a child with a new family has been falling and I am delighted we are able to offer this funding to try to ensure it falls further.”

According to the BBC, the £30m funding could pay for more than a third of the 3,000 children currently in care to find a home.

BBC

In an unusual move, some of the £12bn cuts to the welfare bill are expected to be paid for by taking away money from the BBC. Osborne has warned that the BBC website should temper its “imperial ambitions”.

He is expected to say that the BBC must pay for the cost of providing free TV-licences for the over-75s. This is forecast to cost the BBC almost a fifth (18%) of its entire £3.7bn income from the licence fee.

The move will delight many Tories and newspaper proprietors.

 

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Readers' comments (1)

  • As far as I can understand the main problem with adoptions is the absurd PC requirements of Council jobsworths. It is understandable that they want to be as sure as possible that adopters will give a child a good home, but the hoops would-be adopters have to jump through reportedly verge on the ridiculous. And even not the greatest family is going to be a likely improvement on years 'in care' another contradictions in terms.

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