Spring Budget 2022 Summary

On Wednesday 23 March 2022 Rishi Sunak delivered his Spring Budget amidst a time of global uncertainty.

His speech opened by confirming our commitment to assisting Ukraine with their fight against Putin’s invasion, but this came with a warning to the British public that the global instability presents a risk to our recovery.

That said, Rishi went on to offer reassurances that unemployment forecasts were unaffected and inflation was expected to be back under control by 2024.

There were a few welcome surprises in the way of reduced fuel duty and National Insurance reductions, but you can read our full summary document below, or take a look at the handy headline summaries also below.

Our Spring 2022 Tax Guide can be viewed below by clicking on the link.

Spring Budget 2022 Predictions

Wednesday 23 March will see Rishi Sunak deliver his 2022 Spring Budget.   With rising bills causing a cost of living crisis, and the public purse severely depleted due to Covid, our Tax Specialists will be watching the announcement to see how it will affect you.

All will be revealed on the day, but whilst we wait to see what the Chancellor has in store, take a look at our predictions video.

 

Scottish Budget 2021

9 December 2021 saw Kate Forbes, the Scottish Finance Secretary, set out the Scottish Government’s spending plans for 2022/23.

Whilst Rishi Sunak’s Budget on 27 October 2021 contained some measures that were of interest to Scottish residents, Kate announced today that the Scottish purse, which this year is smaller due to Brexit and the withdrawal of Covid funding, will maximise the funds available to them to deliver key priorities and will focus on giving resources to low income households.

Scottish residents have reason to be optimistic though, as forecasts suggest that the Scottish economy will return to pre pandemic levels by spring of 2022.

There were lots of funding announcements for projects focusing on climate change, health and social care, education, ending homelessness, providing affordable housing, tackling child poverty and helping families with the costs of school lunches, uniforms and travel costs.

The following announcements will however be welcomed by many:

• Business rates relief for retail, hospitality and leisure businesses who will receive a 50% reduction in their business rates for the first three months of 2022, to support them in their return to more normal levels of trading
• Income Tax rates will remain frozen for the 2022/23 tax year, with the tax free personal allowance of £12,570 remaining frozen through to April 2026*
• The Income Tax starting and basic rate bands will see inflationary increases, thus helping those on lower incomes keep more of their money*
• A public sector pay policy with a floor of £10.50 per hour will be introduced, increasing wages for the lowest paid workers
• Increase in the Scottish Child payment, doubling it to £20 per week from April 2022 and expanding eligibility to children aged 6 – 15 from December 2022 onwards
• Over £50million to support the farming sector in tackling climate and nature emergencies and to produce food more sustainably, including £10million for the National Test Programme to transform agriculture and £35.8million for agri-environment schemes

If you have any queries regarding any of the above announcements please do not hesitate to contact us.

*Scottish Income Tax rates 2022/23

Band	Income range	Rate
Starter rate	Over £12,570 – £14,732	19%
Basic rate	Over £14,732 – £25,688	20%
Intermediate rate	Over £25,688 – £43,662	21%
Higher rate	Over £43,662 – £150,000	41%
Top rate	Over £150,000	46%

Our 2022/23 Tax Guide now features all of the up-to-date Scottish rates.  Simply click the PDF below.

Autumn Budget 2021 Summary

Rishi Sunak delivered the Autumn Budget on Wednesday 27 October with pledges of increased support for many.  A complete overhaul of alcohol duties, support for working families, business rate reliefs and support for hospitals and the hospitality sector were on the agenda.  These, along with the increase to the minimum wage, will be welcome news to most.  However, whilst the numbers and forecasts are all positive and impressive, there remains little said about how this support is to be funded.  In fact Mr Sunak’s closing statement pledging to cut taxes by the end of this parliament goes against what many might have been expecting him to say.

With the growth of the economy predicted to recover quicker than anticipated, and unemployment to peak at half the rate previously expected, things appear very positive. However, there were warnings of the coming months being challenging and inflation rates expected to rise.

The tone of the speech was certainly that economic recovery is underway and emergency support is winding down.  A new Charter ensures that in ‘normal times’ the Government should only borrow to invest in future growth and prosperity.  We have of course not been living in ‘normal times’, however listening to the Chancellor today one would be forgiven for thinking the pandemic is over and the purse is full for spending.

Our experts have been busy dissecting all the information from the Chancellor’s statement and have created useful, jargon free summaries so you can understand how the Budget affects you and your business.