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.
"I am delighted to have a long-standing relationship with the BHBPA. Since its foundation the Association has gone from strength to strength and there is no doubt that it has brought huge benefits to its members and the business community as a whole through the partnerships it has formed with the local authorities, Sussex Police and local organisations. It is paramount that Burgess Hill businesses have an effective collective voice."
"The BHBPA is a fantastic hub for our business community to get together and catch up, discuss important local issues and connect new and interesting enterprises."
"As the local hospice for the area, it’s great that we receive so much support from the BHBPA. Last year the members raised an amazing £2150 through activities such as Bake Off and the BHBiz Awards. Each well planned members meeting enables good networking opportunities and speakers that are relevant to the present climate and local issues. We are proud to be members of BHBPA."
"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. "