Jam Tomorrow, Gherkins Today

John Healey approaches his first Budget with the traditional Treasury promise: things will get better once we’ve finished making them worse.

There is, apparently, relief for the national shopping basket. Gherkins have joined the economic recovery programme, a gift inherited from his predecessor. Marmalade is on the list too. After years of squeezed living standards, Britain can finally look forward to being in a slightly cheaper pickle.

But could a sugar tax be lurking behind the dispatch box? Nothing says “we understand working families” quite like sending a revenue inspector into your biscuit tin.

The crucial question is whether toffees should attract less tax than wine gums. Obviously they should. Toffees demand commitment, threaten expensive dentistry and occasionally remove a filling. Wine gums simply lounge about pretending to contain wine. Tax them for false advertising.

Marmalade, meanwhile, deserves special treatment. It contains fruit, encourages toast consumption and gives pensioners something bitter to discuss besides the government.

We shall doubtless be told these measures form a coherent growth strategy. They always do. Somewhere in Whitehall, a spreadsheet will demonstrate that cheaper gherkins unlock productivity.

Until then, keep your expectations low and your sweet jar well hidden.

The Treasury wants its pound of flesh. It may settle for a quarter of wine gums.

On a (slightly) less cynical note

Where There’s a Will, There’s a Treasury

Save through the sunshine, save through the rain;
the Chancellor hopes to see it again.

As John Healey prepares his Budget, inheritance tax supplies its own melancholy poetry. Britain does not impose separate “estate” and “inheritance” taxes: inheritance tax is the levy on the estate. One farewell bill, with several complications.

The standard rate is 40% above available allowances. The basic threshold has sat at £325,000 since 2009 and is frozen until April 2031. Homes left to direct descendants can attract an additional £175,000, though this tapers away for estates above £2 million. Marriage and civil partnership offer further protection. Even death, apparently, rewards good administration.

From April 2027, most unused pension funds and death benefits will enter the inheritance tax calculation. Yesterday’s retirement nest egg becomes tomorrow’s Treasury omelette. This change was announced before Healey took office.

For those contemplating departure, taxation and uncertainty may strengthen the appeal of foreign shores. But buying a suitcase does not cancel HMRC’s interest: long-term UK residents can remain within inheritance tax on their worldwide assets for up to ten tax years after leaving.

So work, save, plan; then check again. The rules may change before the rain.

Britain still offers much to cherish. The cynical question is whether ministers can tell the difference between encouraging people to contribute and encouraging them to book an emigration consultation before the next Budget arrives. Whichever way the wind blows, Montfort can help you plan with confidence, wherever life crosses borders.