2017 stands as something of an anomaly on the important political announcement front – the one and only time that there will be two Budgets in a single year. As noted by the Chancellor last November, the Autumn Statement has now ceased to be. Tomorrow’s spring Budget will be the last of its kind (for the foreseeable future at least), replaced by a yearly autumn Budget (commencing in autumn of this year), followed from 2018 onwards by a Spring Statement.
Confusing? Yes. A good idea? Definitely. By holding the Budget in the autumn it will allow for major tax changes to occur annually, well before the start of the fiscal year. The Spring Statement will then exist to respond to OBR forecasts, but will not be a major fiscal event in itself.
So what should contractors expect tomorrow? As always, it’s impossible to truly predict what will happen (take last year’s Autumn Statement as an unwelcome example) but there are a few key pointers to look out for. We don’t expect to see anything dramatic given that there will only be a 6 month gap between Budgets (not to mention the fact that the Government’s self-imposed 31st March deadline to begin the formal Brexit process is arriving at a startling pace) but there’s always room for a surprise or two. What do we already know, and what would we like to see? Read on below for our observations.