Public finances look strong enough to consolidate this 10 per cent rate. This, combined with the new tax credits and the already-announced reduction of the basic rate to 22p, would reinforce the Chancellor’s political theme that work pays;2. Abolition of so-called Quests (Qualifying Employee Share Ownership Trusts) to clear the decks for the New-All- Employee Share Schemes. One does not prevent the other, but the Chancellor may feel corporate tax deductibility for companies paying into Quests can no longer be justified.Of the two existing all-employee share schemes, the Chancellor is likely to phase out the profit-sharing one KPMG thinks the Saye (Save As You Earn) scheme is safe;3 A package of measures to encourage e-commerce. This will include the £10 discount for filing self-assessment tax returns via the Internet;4 Action to help cut red tape on small business. The committee set up by the government and chaired by Lord Trotman will be submitting its recommendations on helping smaller businesses in the lead-up to the Budget.

Some are likely to be adopted in the Budget.(The next offerings are good each-way bets.)5. Action to lessen the impact of National Insurance Contributions (NICs) on unapproved share options for high- growth internet companies. The Government has been keen to assist high-tech start- ups and there were concerns that the NIC liability might be sufficient to wipe out some companies (particularly internet companies) before they become profitable;6. Inheritance tax – the Government has indicated it wants major reform of the IHT system. The abolition of Potentially Exempt Transfers (Pets), which would mean IHT being charged on gifts given in lifetime, has been mooted.

But Pets are useful in cutting the taxman’s administration, so KPMG reckon the Chancellor will reform only the period which must elapse before exemption from IHT, from seven years to 15 years;7. Pensions – The Government may consider allowing the carry-back and carry-forward of tax relief for pension contributions. But any major pensions reform is unlikely until introduction of stakeholder pensions, which is likely to be towards the summer;8. Stamp duty – An increase in stamp duty is a definite possibility, with house prices in the South-east showing no signs of slowing, despite interest rate rises. It is possible there will be a splitting of the rates for commercial property from residential rates to avoid hitting the commercial sector.KPMG also anticipates anti-avoidance legislation to stop schemes whereby property-owning companies are set up then sold to avoid stamp duty on the sale of the property.Stamp duty on shares will probably remain untouched, says KPMG. Some parties, including the Stock Exchange say abolition of stamp duty would actually boost Government coffers by increasing capital gains tax revenues The Treasury is not convinced.. A move to allow 44-tonne lorries is expected to be recommended tomorrow by the Commission for Integrated Transport.

A move to allow 44-tonne lorries is expected to be recommended tomorrow by the Commission for Integrated Transport.
In advice to the Government, the commission is likely to say that an increase from the currently-permitted 40-tonne weight limit will mean fewer trucks on the roads.The commission’s findings will be welcomed by freight groups, but viewed with alarm by the green lobby.At present, 44-tonne lorries are only allowed on journeys to and from rail heads.Tomorrow, the commission is expected to say that a move to 44 tonnes will mean 1,000 fewer lorries on the road and the equivalent of 230 return lorry journeys a day between Edinburgh and London being saved.The 44-tonne limit will not mean bigger lorries, but will merely allow trucks to carry loads of up to 44 tonnes.Richard Turner, deputy director general of the Freight Transport Association, said today: “It is 20 years since a Government-commission report identified the benefits of, and commended the introduction of, 44-tonne lorries.”Subsequent reports have come to similar conclusions and it is to be hoped that the commission’s report will do so too. The Government should take action as soon as possible.”Roger Higman, senior transport campaigner for Friends of the Earth, said: “We have been promised before that increases in lorry weights will mean fewer trucks on the road – but it just hasn’t happened.”This proposed increase will mean people feeling threatened by heavy lorries, more pollution and more damage to roads and, in particular, damage to bridges.”He added: “This is not the way to get more trucks off the roads and onto the railways. It’s a great shame the commission are recommending 44-tonners.”In 1996, a Government report said a general increase in maximum lorry weight to 44 tonnes would mean reduced congestion, fuel saving and a reduction in emissions.The Department of the Environment, Transport and the Regions said the 44-tonne proposal was “advice to the Government, not Government policy” and would not result in bigger vehicles on Britain’s roads.A spokesman added: “This is not the thin end of the wedge. The Government is not considering further weight increases above 44 tonnes or other increases in lorry size.”.