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The UK government is contemplating reducing the annual tax-free savings allowance from £20,000 to £10,000, aiming to boost investment in stocks. Experts warn this could harm mortgage funding and savings culture, emphasizing the need for better financial education. The decision is expected in the upcoming budget.
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Rachel Reeves faces a £20bn fiscal gap in next month’s budget due to a downward revision of UK productivity forecasts by the Office for Budget Responsibility. The downgrade, driven by Brexit, austerity, and the pandemic, increases pressure on tax rises and spending decisions amid economic challenges.
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HMRC faces scrutiny after wrongly suspending child benefits for nearly 4,000 parents due to flawed Home Office travel data. Officials will be questioned over the costly mistake, which affected families including Ukrainian refugees and hospital patients. HMRC has promised to improve processes and safeguard against future errors.
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The UK government faces ongoing scrutiny after leaks and the resignation of the OBR chair Richard Hughes. The Budget process was marred by unauthorized leaks, a premature document release, and conflicting reports on public finances. The OECD warns that fiscal tightening will slow growth, while political tensions escalate over the handling of leaks and economic forecasts.