The top-searched issues ahead of tomorrow’s Budget are revealed by MailOnline today.
An analysis of the most searched Budget topics over the past year have been broken down by each area in the UK, revealing that tax credits, pensions and the NHS are the issues people care about the most.
In Scotland, pensions and the NHS are the most searched terms, but across England education appears to be the priority, while the Welsh are searching about welfare and the health.
In Northern Ireland a mix of education, tax credits and unemployment are the most searched issues, according to research of Google trends.
The map, built by the Google Trends team, also allows users to see how much each Budget topic is being searched for by clicking on individual issues.
It comes ahead of George Osborne’s eighth Budget tomorrow when he will set out how he will slash a further £4billion from public spending.
He will tell the country that more austerity is necessary because the world is a ‘more uncertain place than at any time since the financial crisis’ as he unveils his new plan of saving 50p in every £100 of government spending by 2020.
He insisted at the weekend that it was ‘not a huge amount in the scheme of things’ but having vowed to protect the high spending NHS, schools and defence budgets, other areas will see their budgets cut by up to £3 in every £100.
Tax credits: The darker the colour, the more the topic of tax credits was searched for. Eastern Northern Ireland and Scotland produced the top searches for tax credits over the past year
Pensions: Parts of Scotland and the east of England were the areas with the most pension-relat ed search terms on Google over the past year
Disability benefits will suffer further cuts, with £1.2billion set to be raised by cutting Personal Independence Payments to around 640,000 claimants.
Motorists are braced for the first hike in fuel duty in five years as Mr Osborne is expected to rise the rate of tax on petrol and diesel in line with inflation, while further tax rises are expected on insurance premiums.
WHAT TO LOOK OUT FOR IN TOMORROW’S BUDGET
George Osborne (pictured outside Number 11 on the eve of his eighth Budget) today promised to offer Britain ‘long term solutions to long term problems’
George Osborne opens his eighth Budget at 12.30pm tomorrow. His main announcements are due to be:
- Downgraded growth forecasts that will force the Chancellor to cut spending further.
- Cuts of £4billion to public spending, including £1.2billion from disability benefits.
- Approval for a series of major infrastructure projects, including funding to plan High Speed 3, a new railway between Manchester and Leeds, and Crossrail 2 in London.
- Income tax cuts through a new increase in the personal allowance from £11,000 and a raising of the threshold for the 40p rate from £42,385.
- Thousands of new homes in ‘garden suburbs’ which expand existing towns and cities, together with a £1.2billion fund to develop homes on brown field sites.
- Increases in fuel duty and the insurance premium tax.
Around £400million will be raised by a crackdown on the so-called ‘Paxman loophole’, named after senior presenters who have taken advantage of a scheme that diverts salaries via a company to avoid income tax and national insurance.
Mr Osborne will also have to find a way of funding tax cuts for the middle classes as he is expected to announce the first significant rise in the 40p tax threshold since becoming Chancellor.
The Tory election manifesto promised to raise the tax band to £50,000 by the end of the decade and the Chancellor wants to make progress towards that goal in tomorrow’s Budget.
He is also set to announce a further rise in the personal tax allowance having vowed to increase it to £12,500 by 2020.
Speaking on the eve of the Budget, Mr Osborne vowed to offer Britain ‘long term solutions to long term problems’.
The Chancellor said his plans would include support for the High Speed 3 railway linking Manchester and Leeds, and Crossrail 2, a new north-south link across London.
Speaking from a construction site for the first Crossrail project, Mr Osborne said the railway was a clear example of delivery on long term projects from the Government.
Labour today demanded Mr Osborne ‘stop promising and start delivering’.
He said: ‘Five years ago as part of our long term economic plan we gave the go-ahead to Crossrail and here it is, nearing completion.
‘In the Budget tomorrow I’m going to give the greenlight to Crossrail 2 in London and the new High Speed 3 link across the north of England.
‘In the Budget, we are not going to go for short term fixes in this uncertain world, we are going top have long term solutions to Britain’s long term problems and the Budget is going to make sure Britain is fit for the future.
‘I think an absolutely crucial part of improving the economy of our country is making sure we invest in our northern powerhouse and improving transport links across the north of England will be a huge boost to the economy of the north of England and the whole of the United Kingdom.’
However Mr Osborne faces a tricky test to appease his backbench MPs as up to 150 are threatening to oppose any rise in fuel duty.
And this morning it emerged that he has been warned by his Cabinet colleague Robert Halfon not to hike fuel duty.
He and scores of Tory backbench MPs have urged Mr Osborne not to use low oil prices – which kept supermarket petrol prices below £1 for more than three months – as an excuse to raise fuel duty.
They point to figures showing the proportion of tax on a litre of petrol is at its highest level in seven years.
Health: The darker the colour, the more the topic of health was searched for. Northern Scotland produced the most searches for the NHS and other healthcare issues over the past year
Nearly 60 per cent of the price of petrol is currently paid to the taxman in fuel duty – one of the highest rates in Europe.
But even a moderate rise in fuel duty – by linking it to inflation – would raise vital funds for the Treasury as Mr Osborne seeks to find a way of plugging an £18billion black hole in the economy.
Rising fuel duty in line with inflation would add the equivalent of 0.75p onto the cost of a litre of petrol or diesel.
However the first hike in fuel duty in five years could be part of a triple whammy for motorists as petrol prices pushed past £1 for the first time in three months and Mr Osborne is also set to hike taxes on insurance premiums.
George Osborne warned by his fellow Cabinet minister Robert Halfon NOT to hike fuel duty in the Budget as motorists face triple whammy
George Osborne has been warned by one of his Cabinet colleague not to hike up fuel duty in tomorrow’s Budget, it emerged today.
Tory MP Robert Halfon, the consumer rights champion who was promoted to the Cabinet last year, is understood to have raised concerns with Mr Osborne over the prospect he will put up fuel duty for the first time in five years.
George Osborne (pictured left this morning leaving Number 11 on the eve of the Budget) has been warned by his Cabinet colleague Robert Halfon (right) not to hike up fuel duty in tomorrow’s Budget
It could hit motorists with a triple whammy as petrol prices pushed past £1 for the first time in three months and Mr Osborne is also set to hike taxes on insurance premiums.
The Chancellor has frozen fuel duty every year since he entered the Treasury in 2010 but is expected to increase the rate of tax paid on petrol and diesel in line with inflation.
He is keen to exploit plummeting oil prices to increase fuel duty, which would raise vital funds for the public finances and help Mr Osborne find a way of plugging an £18billion black hole in the economy.
Rising fuel duty in line with inflation would add the equivalent of 0.75p onto the cost of a litre of petrol or diesel.
But the Telegraph has reported that Mr Halfon and another minister have privately lobbied the Chancellor over the expected rise.
Mr Osborne faces fierce opposition from his party. He has been warned that up to 150 Tory MPs are opposed to the hike and could join forces with the SNP, whose 54 MPs have pledged to oppose any rise in fuel duty.
Jason McCartney, the chair of the cross-party Fair Fuel for Motorists campaign, has told Mr Osborne not to use motorists as a ‘cash cow’.
Tax makes up 60 per cent of the price of petrol and diesel, with the proportion of money paid in tax at its highest level for seven years
They point to figures showing the proportion of tax on a litre of petrol is at its highest level in seven years.
Nearly 60 per cent of the price of petrol is currently paid to the taxman in fuel duty – one of the highest rates in Europe.
It comes as Tesco increased its petrol prices above £1 a litre on the eve of the Budget. It is the first time any supermarket has charged more than a £1 since the start of December
Tax currently makes up nearly 60p in a litre of petrol
Tomorrow’s budget could deliver further bad news for motorists as Mr Osborne plans a new rise in premium insurance tax.
It has already sparked fury as it emerged the average family could see the cost of their premiums rise by up to £190 a year.
At last year’s Budget, George Osborne increased by half the rate of Insurance Premium Tax, which is levied on home, motor, medical and pet insurance.
Insurers fear a second rise tomorrow could mean tax on premiums effectively doubling in less than a year.
Critics say the rises are a ‘tax on prudence’ and discourage people from protecting themselves.
They also complain that insurance policies for car users are compulsory, making it impossible to avoid the hikes.
Research carried out by the Association of British Insurers suggests families could be paying up to £190 a year more once all their insurance premiums and all their different premiums are included.
James Dalton, ABI’s Director of General Insurance Policy, said: ‘Increasing IPT is no way to recognise the millions of families and firms who are protecting themselves against many of life’s uncertainties through insurance. Insurance is not a luxury and should not be taxed as such.’
John O’Roarke, managing director of general insurance at the insurer LV also condemned the possible rise.
He told Insurance Age: ‘I think it would be outrageous. One of the government’s stated aims is to reduce the cost of living for ordinary people.
Motorists have been warned to brace themselves for increasing petrol and diesel prices even if Mr Osborne doesn’t announce a hike in fuel duty in today’s Budget.
The RAC said car drivers should expect to see forecourt prices leap by 3p a litre by April, with oil predicted to rise above $40 a barrel and the pound weakening.
This means any increase in duty in the Chancellor’s statement would be an additional hit to vehicle owners’ fuel bills — something the motoring group said would ‘go down like a lead balloon’ with the nation’s drivers.
Families £190 bill if Budget raises tax on insurance premiums meaning cost would have doubled in less than a year
Plans to hike up taxes on insurance premiums sparked fury last night as it emerged the average family could see the cost of their premiums rise by up to £190 a year.
At last year’s Budget, George Osborne increased by half the rate of Insurance Premium Tax, which is levied on home, motor, medical and pet insurance.
Insurers fear a second rise tomorrow could mean tax on premiums effectively doubling in less than a year.
Critics say the rises are a ‘tax on prudence’ and discourage people from protecting themselves.
At last year’s Budget, George Osborne increased by half the rate of Insurance Premium Tax, which is levied on home, motor, medical and pet insurance
They also complain that insurance policies for car users are compulsory, making it impossible to avoid the hikes.
Research carried out by the Association of British Insurers suggests families could be paying up to £190 a year more once all their insurance premiums and all their different premiums are included.
James Dalton, ABI’s Director of General Insurance Policy, said: ‘Increasing IPT is no way to recognise the millions of families and firms who are protecting themselves against many of life’s uncertainties through insurance. Insurance is not a luxury and should not be taxed as such.’
John O’Roarke, managing director of general insurance at the insurer LV also condemned the possible rise.
He told Insurance Age: ‘I think it would be outrageous. One of the government’s stated aims is to reduce the cost of living for ordinary people.
‘Motor insurance is a significant part of most people’s annual expenditure. Potentially putting six to seven per cent on top of that, if they were to put through the same scale of increase as last time, goes against everything they have argued for.’
A spokesman for the British Insurance Brokers’ Association (Biba) said: ‘A rise in IPT would discourage customers from taking out policies.’
The ABI figures calculate the increase since before last year’s Budget, if Mr Osborne increases the tax again.
Rising insurance costs: Research carried out by the Association of British Insurers suggests families could be paying up to £190 a year more
They are based on insurance costs for a family of four with two cars, a dog and home and medical insurance.
The biggest single increase would be of £148 – £37 per person – on private medical insurance.
Motor insurance would rise by another £24, home insurance by £9 and pet insurance by £9.
Insurance Premium Tax is paid on around 50million insurance policies in the UK, including motor, home contents and building, pet insurance and breakdown cover.
In July last year Mr Osborne announced the rate was to increase from six to 9.5 per cent, to come into force from November 1. That is expected to raise some £8billion over five years.
Last week the AA warned ministers are considering a second rise of three per cent in tomorrow’s Budget. They accused the Chancellor of treating motorists like ‘wallets on wheels’.
A Treasury minister has claimed IPT is ‘not a tax on consumers but on insurance companies’.
Economic Secretary Harriett Baldwin made the claim in a letter to the AA at the time of the last hike in IPT last year.
In Germany and other European countries, IPT is paid at the same rate as VAT. In this country that would mean a tax of 20 per cent.