Spring Statement: What does it mean for UK businesses?

posted by 2 years ago in News
Spring Statement: What does it mean for UK businesses?

On the 13th of March 2018, chancellor Phillip Hammond announced the Spring Statement and when compared to last years’ businesses are feeling more optimistic as they welcome commitment and investment with open arms.

However, although they are feeling positive with this years’ announcement businesses around the UK are urging the chancellor to not let politics step in the way of his plans.

So, what are the key points of this years’ Spring Statement?

The Economy

  • A growth forecast has been predicted for 2018 of 1.5% from 1.4%
  • For 2019 and 2020 the growth forecast is currently 1.3%
  • Inflation has been forecasted to drop from 3% to 2% by the end of the year
  • The National Living Wage is set to increase to £7.83 from £7.50 (25 years old and above) in April

Tax

  • £20m will be available for businesses and universities to carry out research on reducing the plastic environmental impact
  • A consultation to be carried out on extending the current training tax relief for both employees and those who are self-employed
  • The government has expressed ideas for “fairer” taxation on digital multinational businesses

Business

  • The revaluation of business rates has been set to be brought forward to 2021 – a year sooner
  • Cities within England have been welcomed to bid on the remaining £840m from the regional transport fund
  • Plans for £95m to be spread out within 13 areas for the rollout of full-fibre broadband across the country
  • The role of cash within the new economy will have a consultation to discuss the demand of 1 and 2 pence pieces and £50 notes

Adam Marshall, director of the British Chambers of Commerce comments on the Spring Statement;

“Businesses will be encouraged by the chancellor’s report on the UK’s fiscal health, with lower projections for the deficit and falling national debt, as well as his full-throated defence of the market economy and the role of the private sector in delivering prosperity.”

Head of Businesscomparison.com, Philip Brennan also shares his opinion;

“This years’ Spring Statement is not a game changing budget for most British businesses, however, if the ideas for fairer taxation on multinational digital companies are actually implemented it will give digital businesses a chance to compete on a higher level playing field. I will always encourage investment in regional transport as this can often improve productivity for many reasons and of course, help the environment in which we all live in. VAT collection mechanism, if done correctly could also help save time and hopefully make life easier for businesses which can currently be a headache.”