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The Chancellor will unveil his Budget on March 3 and he is expected to set out a raft of continued coronavirus support measures for businesses and families. But it is thought Mr Sunak will also use the fiscal event to stress that current levels of Government spending and borrowing are unsustainable and action must now start to be taken to improve the public finances. The Times reported that Mr Sunak is planning to announce a freeze on the lifetime allowance on pensions, lasting for the rest of the current Parliament. The allowance - the amount of money people can build up in their pension pot before being hit with big tax bills - is currently set at £1, 073, 100. Chancellor Rishi Sunak will unveil his Budget next week on March 3 amid growing Tory fears he will hike a range of taxes Reports suggest Mr Sunak could freeze the lifetime allowance on pensions for the rest of the current Parliament Mr Sunak has repeatedly stressed that current Government spending levels are not sustainable. Office for National Statistics numbers published this month showed state debt had risen above £2.
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Former pensions minister Sir Steve Webb, who is now a partner at financial consultancy LCP (Lane Clark & Peacock), said: 'What people need in pension planning is certainty, but with the lifetime allowance we have seen the opposite. ' The Times also claimed Mr Sunak could opt to freeze the higher rate of income tax threshold at £50, 000 in a move which would see hundreds of thousands of people becoming higher rate tax payers. It is thought this could generate an extra £1billion for the Treasury. Meanwhile, The Telegraph said the personal income tax allowance - the amount of income people do not have to pay tax on - could also be frozen at the current threshold of £12, 500. The personal allowance threshold has risen significantly in the last decade - it stood at £6, 475 in 2009/10. Keeping the threshold at the current level could boost Treasury coffers by billions of pounds. A senior Treasury source told The Telegraph that as well as messages of 'support' at the Budget, Mr Sunak will also speak plainly about Government spending levels.