Today saw the Chancellor, Phillip Hammond, deliver his first Spring Statement.
As promised, there were no announcements made regarding changes to taxation, but instead an update on the finances of the economy and the prospects for the future.
Lasting just over 20 minutes, the Chancellor informed us that the economy has grown every year since 2010 and that every region has the lowest level of unemployment over the same period. Growth is set to increase to 1.5% in 2018, up from the previously announced 1.4%, and borrowing is forecast to be £45.2bn, revised down from £49.9bn.
The Chancellor was optimistic that the nation is successfully working towards getting back on track, and that if the public finances continue to reflect improvements then he expects that there will be capacity to increase public spending and investment in future years.
He did however announce extra funding for small businesses looking to take on apprentices and is bringing forward the next business rates revaluation to 2021. Affordable housing was also mentioned with extra money being promised to help the nation’s first time buyers get on the housing ladder.
A number of consultations were announced which may, one way or another, impact on our purses; a possible restriction on the VAT relief available on red diesel and a possible cut in the duty on low emission vans, the former of which may impact on agricultural businesses… watch this space!
If you have any queries on the Spring Statement, or the rates and allowances which will be in place for the upcoming 2018/2019 tax year, please give us a call on 01228 711888.
Alternatively, check out our coverage of the November 2017 Autumn Budget, where you will find our useful, jargon free summaries and handy tax guide.