29th OCTOBER 2018
the 2018 Autumn Budget – An overview of the main points
Welcome to the Davenham view on the Chancellor, Philip Hammond’s third Budget announcement – the final one before the UK leaves the EU. There have been a few outbursts by the Broadsheets on the delivery of the Budget as well as the content (or lack of in some areas) with the most notable reference to “an end to austerity.” But how does the Budget impact UK businesses from an asset finance point of view? Here’s what we’ve taken from yesterday’s 72-minute speech…
Fiscal Phil says fiscal rules OK
The forecast for borrowing was stated as £11.6bn lower in 2018-19 than originally forecast at the spring statement. That is equivalent to 1.2% of GDP. Philip Hammond referred to the falling debt as “a turning point in our nation’s great recovery” and assured us that the government will meet its fiscal targets three years early, with a further fall in borrowing as a percentage of GDP to 1.3% in 2021.
Current economic state is unspectacular
The Office for Budget Responsibility (OBR) said the economy is stable and indicated good news for future growth. It was announced that 3.3 million more people are in work since 2010 and 800,000 more jobs are forecast by 2022 (200,000 more than predicted last Autumn).
A more fairer tax system targeted at the Big Boys
A new 2% digital services tax will be applied to the likes of Facebook, Amazon and Apple to name just a few of the global companies, on the money they make from UK users, which is predicted to help generate an additional £400m a year for the government.
Public transport gets moving
A £30bn fund was announced for England’s roads as well as a 30% growth in infrastructure spending. This is great news for our clients in this sector.
More initiatives to help the environment
Whilst the UK has been hit by the far east’s reduction in accepting recyclable materials, the onus has been put back on UK industries with a plastics tax applicable on packaging unless it contains 30% recyclable material.
HMRC a preferential creditor
It was announced that from 6 April 2020, the Government will change the rules when a business enters insolvency, and from that point, HMRC will be a preferential creditor. In an attempt to overcome the big issue of tax avoidance, it was also stated that directors and other persons involved in tax evasion or phoenixism will be jointly and severally liable for company tax liabilities.
Lest we mention the B word
In addition to further funding announced earlier this year, Philip Hammond informed us of a further £500m to be allocated to our departure from the EU, and if needed, the Spring Statement would be upgraded to a full Budget if needed.
So there you have a summary of the key points from Davenham – we would welcome your thoughts as an SME and if you have any queries or concerns as a result of any of the announced changes that might affect you as a business owner when it comes to your growth, please call the Davenham team on 0161 832 8484.
Fiscal Phil says fiscal rules OK
The forecast for borrowing was stated as £11.6bn lower in 2018-19 than originally forecast at the spring statement. That is equivalent to 1.2% of GDP. Philip Hammond referred to the falling debt as “a turning point in our nation’s great recovery” and assured us that the government will meet its fiscal targets three years early, with a further fall in borrowing as a percentage of GDP to 1.3% in 2021.
Current economic state is unspectacular
The Office for Budget Responsibility (OBR) said the economy is stable and indicated good news for future growth. It was announced that 3.3 million more people are in work since 2010 and 800,000 more jobs are forecast by 2022 (200,000 more than predicted last Autumn).
A more fairer tax system targeted at the Big Boys
A new 2% digital services tax will be applied to the likes of Facebook, Amazon and Apple to name just a few of the global companies, on the money they make from UK users, which is predicted to help generate an additional £400m a year for the government.
Public transport gets moving
A £30bn fund was announced for England’s roads as well as a 30% growth in infrastructure spending. This is great news for our clients in this sector.
More initiatives to help the environment
Whilst the UK has been hit by the far east’s reduction in accepting recyclable materials, the onus has been put back on UK industries with a plastics tax applicable on packaging unless it contains 30% recyclable material.
HMRC a preferential creditor
It was announced that from 6 April 2020, the Government will change the rules when a business enters insolvency, and from that point, HMRC will be a preferential creditor. In an attempt to overcome the big issue of tax avoidance, it was also stated that directors and other persons involved in tax evasion or phoenixism will be jointly and severally liable for company tax liabilities.
Lest we mention the B word
In addition to further funding announced earlier this year, Philip Hammond informed us of a further £500m to be allocated to our departure from the EU, and if needed, the Spring Statement would be upgraded to a full Budget if needed.
So there you have a summary of the key points from Davenham – we would welcome your thoughts as an SME and if you have any queries or concerns as a result of any of the announced changes that might affect you as a business owner when it comes to your growth, please call the Davenham team on 0161 832 8484.