Knowledge & Opinions
09 Apr 2018

UK: Spring Statement 2018

The Chancellor delivered his first Spring Statement on 13 March 2018, an economic update, free of new tax and spending measures. MSI's UK London-based accounting member haysmacintyre provides an overview.

Economic and Fiscal Forecasts Claiming to see “a light at the end of the tunnel”, the Chancellor announced the Office for Budget Responsibility’s (OBR) GDP growth forecast of between 1.3% and 1.5% for each year to 2022, together with a forecast fall in inflation.  Debt as a share of GDP is forecast to start falling in 2019. Autumn 2017 Progress Update The Chancellor provided an update on progress since his November 2017 Budget, including:
  • The National Living Wage will rise to £7.83, from 1 April 2018;
  • The next Business Rates revaluation will be brought forward to 2021;
  • Allocations of £1.5bn of Brexit preparation funding; and
  • Measures to tackle late payment of debt to small businesses.
Tax Consultations Whilst not announcing any new tax measures today, the Chancellor did not disappoint tax professionals, who might otherwise be missing the Red Book.  He has invited views on future changes to the tax system, including:
  • Reducing single-use plastic waste through the tax system: a “litter levy”;
  • VAT registration threshold: a call for evidence;
  • Allowing Entrepreneurs’ Relief for Capital Gains Tax on gains made before dilution;
  • A position paper on corporate tax and the digital economy;
  • Alternative method of VAT collection – split payment to combat online VAT fraud; and
  • Online platforms’ role in ensuring tax compliance by their users

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