Budget wishlists: personal finance

Six finance experts give their wishes for the forthcoming budget, plus include few predictions on what Gordon Brown is likely to have in store.

Mike Warburton, senior tax partner, Grant Thornton
· We'd like to see a more friendly tax credit system. This Budget could well see the amounts payable increased but there is a lack of public information surrounding them and those most in need are not claiming.
· Annuities reform is an important issue, so expect to see a more detailed consultation announced with a view to reform in the autumn.
· Ale lovers may be heartened by the fact that the excise duty on small breweries could be reduced and this could mean a lower rate on duty on beer brewed by smaller brewers.
· It would also be good news to hear new proposals to increase the number of organisations that could claim charity status.
· We also need to be prepared for an increase in VAT, which could be painful for low income earners - they could see their weekly income reduced by as much as 2.5% if VAT goes up from 17.5% to 19%. By raising it to 19%, it should raise an extra ?5.5bn. Gordon Brown's other option is to raise the upper rate threshold of class 1 national insurance contributions from ?29,000 to ?34,500 - but this would only raise ?1bn. He would be unlikely to raise both VAT and NI.

Peter Williams, deputy director general, Council of Mortgage Lenders
· We're hoping for a freeze on stamp duty and a review to introduced a fairer system that creates fewer distortions in the market.
·A lower VAT on home improvements and repairs would be an incentive to improve the UK's housing stock.
· More needs to be spent on flood defences.
· There should be a joint initiative by lenders, the Treasury and government departments to encourage the developments of products allowing people to draw on wealth in their homes to provide an income in old age.

Nikki Foster, savings and investments manager, Chase de Vere
I'd like to see compulsion for employers for stakeholder pensions. Even if they only paid a relatively low amount - say 3% - it would make an enormous difference and kick-start the market. Research from the Association of British Insurers has shown most people would start a pension if their employer gave something too. The rules surrounding individual savings accounts (Isas) remain complicated and need to be simplified. There also needs to be a substantial increase in the inheritance tax threshold. As it's currently set at ?242,000 this is too low when you consider how much house prices have risen.

Charles Crawford, executive director, Churchill Insurance
We're wishing for a freeze on insurance premium tax, which is currently set at 5% and 17.5% for travel cover. There are real fears that it is seen as a soft target and could go up. If it's increased, there will be a significant impact on motorists and some may be more inclined to drive without insurance.

Damion Larkin, head of advisory services, The Share Centre
I'm hoping for a level playing field for shares alongside spread betting. Spread betting often involves gambling on share movements but because it falls under betting rules, there is no stamp duty on bets. Many feel it's a far riskier activity than buying shares that can be the best vehicle for saving long term. We'd like to see employee share ownership widened further. This was improved last year, but we want to see greater awareness and more smaller companies setting up schemes. It may be wishful thinking, but we'd also like to see an end to capital gains tax

Andrew Shaw, private client partner, Kingston Smith
In the ideal world we'd like to see capital gains tax abolished. I'd also like clarification of capital gains tax taper rules in particular as far as business assets are concerned. Businesses would also benefit from a change in corporation tax. Currently this kicks in at profits over ?10,000. There would be a real encouragement to entrepreneurs in raising this level. Although it's unlikely to happen, it would be too to see the amounts that can be saved in an individual savings account raised. The government says it wants more people to save and raising this to the former PEP level of ?9,000 would be an incentive.