What did we learn today from the Spring Statement?
Philip Hammond described himself as “positively Tigger-like” as he presented upgraded forecasts for the economy and public finances. The economy is expected to grow more strongly than previously predicted in 2018 with borrowing dropping by £7.5 Billion.
Strong tax receipts and productivity growth have delivered extra cash but these have not filtered through into the latest figures so where is the money going? Well based on the figures forecast through to 2023, to pay off our national debt.
No announcements on new tax or spending commitments at this stage but watch this space as he’s promised to reveal more plans in the Autumn Budget.
If public finances continue to improve this year, he could have more money to spend on services. A full spending review to allocate the money to different services in 2020 may be too late for many.
Mr Hammond announced that the planned revaluation for business rates will be brought forward from 2022 to 2021, and thereafter, revaluations will be carried out every three years, rather than every five.
We’ve also had the Treasury publishing suggestions for how the UK government could tax large digital businesses, along with proposals to ensure that online companies pay VAT owed to the exchequer.
The chancellor launched a call for evidence on how to tax single-use plastics. Nothing tangible at this stage but a clear message that more tax is required – it’s just not clear exactly what or from whom!
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