On the basis you’ve probably heard enough about Brexit! In our latest newsletter we focus on the Chancellor’s Spring Statement and the implications for you or your business.
As we head towards Brexit, the Chancellor has pledged to spend £26.6bn to boost the economy. But warned that a disorderly Brexit would deal a ‘significant’ blow to the short-term economic activity. These are the key points arising:
- The UK is forecast to grow at the slowest pace since the financial crisis; down to 1.2% for 2019. Although it’s expected to rebound after that.
- Wages are expected to keep growing at rates of 3%+ over the next five years. Whilst the National Minimum Wage will be reviewed to deliver ‘sustainable pay rises’ for millions of British workers. From April the National Minimum Wage will rise to £8.21
- UK borrowing is projected to be £22.8bn; almost £3 billion lower than predicted in the October Budget.
- A new £3bn homes guarantee scheme was announced to support the delivery of 30,000 affordable homes.
- Whilst a new homes standard will be introduced to mandate the end of fossil fuel heating systems in new houses by 2025.
- A consultation, on how to replace PFI (private finance initiatives) was announced. With £60m will be invested in 10 cities across England.
- An £800m increase in non-NHS spending was announced.
- The Competition and Markets Authority have been asked to investigate the digital advertising markets. Warning tech giants, such as Facebook and Google, that they will pay their fair share.
- New initiatives to tackle ‘the scourge of late payments for small businesses’ will be revealed shortly.