The Chancellor Philip Hammond presented his first Spring Statement on Tuesday 13th March 2018.
In his Spring Statement, Hammond has given an update on economy forecasts and public finances as well as on the measures announced in the Autumn Budget in November.
For business owners, the Spring Statement has not brought many changes and has left some commentators feeling it was a lost opportunity to boost productivity and encourage investments.
Spring Statement Highlights
- Economic growth forecast for 2018 has been revised upwards from 1.4% to 1.5%. 2019 and 2020 forecasts have been left unchanged at 1.3%.
- Borrowings are forecasted to drop to £45.2 billion for 2017-2018 which represents a £4.7 billion less than expected in November
- £1.5 billion have been allocated to departments to prepare for Brexit in March 2019
- Next business rates revaluation has been brought forward from 2022 to 2021
- £80 million have been allocated to small businesses promoting apprenticeships
- The Chancellor has evocated the need of reducing plastics waste and £20 million have been allocated to businesses and universities to encourage researches on the subject
- A consultation has been launched on a new VAT collection system for online businesses
- The Government is seeking views on the role of cash in the current economy and preventing tax evasion and money laundering
At HMT we work with businesses at all stages of their development from sourcing investment for growth through to exit. Managing investment into and generating financial returns from your business ownership is a key part of our advisory services to ambitious entrepreneurial business as well as structuring this in the most tax efficient manner.
For more information about the Spring Statement and how it can affect you and your business, please contact one of our partners on 01491 579740.