Peppered with the usual jibes there was remarkably little to report with this year’s Spring Statement. No new legislation, no strategic announcements, no changes to tax. Instead, the Chancellor used the occasion to provide an update on the health of the economy, an update of progress since the Autumn Statement and an invitation for interested parties to give their view on proposed policy changes. So, what did we learn?
- The health of economy
- Indicators for GDP growth, manufacturing output, and employment are forecast to rise.
- The indicators for inflation and government borrowing are forecast to fall
- Progress since the Autumn budget
- Housing challenges: progress is being made to meet housing needs by working with local authorities and other parties. Mention was made of the 60,000 first time buyers who have benefitted from the stamp duty concessions announced last year.
- Helping households: cited increases in basic tax allowances at the last budget and increases in the National Living Wage to £7.83 per hour.
- The Chancellor also announced that the next business rates revaluation will take place a year earlier than planned, in 2021, with further reviews every three years starting 2024.
- Improving transport in English cities; plans to allocate the £1.7bn of funding announced in the Autumn Budget 2017. Half the funding has been allocated to Combined Authorities with mayors, the balance to cities across the UK via an invitation to bid.
- Improving the UK’s digital connectivity. The aim is to roll out full-fibre to local areas.
- Inviting views on proposed policy changes
- Reducing single-use plastic waste through the tax system. This will look at ways to reduce the impact of plastic waste in our environment such as disposable plastic cups, cutlery and foam trays. Some of the tax revenue raised will be used to fund research into new ways to encourage a more responsible use of plastic.
- Making sure multinational digital businesses pay a fair share of tax. This is an ongoing attempt to ensure that the larger digital players pay tax in the UK on sales they make in the UK.
- Seeking views on the role of cash in the new economy. Will cash become less relevant as digital payment processes become more widely used? This and the prevention of the use of cash to avoid tax and to launder the proceeds of criminal activity will be opened to a wider debate.
- Supporting people to get the skills they need. Improving skills to benefit growth in the economy by investing in upskilling and retraining, especially by the self-employed.
To find out more about this article please contact us.