Posted on 17th November 2016
Autumn Statement 2016 Predictions
Mazars, the top-ten UK and international audit, tax accounting and advisory firm, offers South East businesses its take on the upcoming Autumn Statement.
The only certainty is uncertainty.
All eyes will be on Philip Hammond as he takes to the floor for his first Autumn Statement on 23 November 2016, following the hugely significant EU referendum result. Mr Hammond has already warned that Brexit will create economic turbulence and fiscal uncertainty. It is probably the case that the only certainty we will have for some time is that there will be uncertainty.
What we do already know is that Mr Hammond has abandoned the plans of his predecessor, George Osborne, to return the economy to surplus by 2020. He has also indicated his intention to ‘reset’ economic policy, so the Autumn Statement will present the first opportunity to see what this entails. A key factor is likely to be encouraging investment in the UK to stimulate the economy, which may take the form of a mix of tax incentives and investment in major infrastructure projects – in view of the continuing need to bring down the fiscal deficit this will no doubt require a balance between major announcements and deferred implementation.
The Prime Minister has also spoken about a government that works for everyone and not just the privileged few, but the government’s hands are somewhat tied on tax policy by the tax lock put in place by George Osborne, under which the government pledged not to increase income tax, national insurance or VAT over its current term. There is no such tax lock on corporation tax, and the trend set by Mr Osborne was to reduce the headline rate to attract inward investment. This is already set to fall to 17% in April 2020, but further reductions look less likely under the ‘new management’ (unlikely Mr Osborne’s intention to further reduce the rate to 15%). Nor is there any obvious limitation to the introduction of further “stealth taxes”. The 3% SDLT surcharge has proven to be a major money spinner, whilst the second Insurance Premium Tax increase in a year took effect on 1 October 2016 with the Apprenticeship levy coming into effect next April: the question is how creative could the Chancellor be?
Click here to read Mazar’s predictions on what will be in this vital announcement.
"The BHBPA is the most effective and dynamic business organisation I have ever worked with in over 30 years in Local Government. It has a very active and large membership whose points of view are taken seriously by all government structures. Peter Liddell does an excellent job in providing unique and enjoyable networking opportunities where members interact and discuss points of mutual interest. It provides a forum for businesses to discuss common issues, to share experiences and to play a powerful and meaningful role in the Burgess Hill community. The BHBPA provides important and credible support for all its members and ensures that their best interests are represented where necessary. "
""BHBPA is a really well organised and run group, great for networking and benefitting from knowledgeable local speakers with real business insight. Peter brings enthusiasm and humour which helps drive the association forward. I am glad to be part of it.""
"“Sutton Winson have been members of the BHBPA for around 7 years. We have found it a great way to keep in touch with Burgess Hill businesses and to meet with likeminded people. It’s not just another “networking” group, as it tackles the real issues and gets things done”"
"The BHBPA is an energetic and vocal organisation that connects and empowers and informs the local business community acting as an effective conduit to local authority and other organisations. We are proud to be part of that community and the association."