In her brief Spring Statement, the Chancellor confirmed a raft of spending measures whilst steering clear of any tax cuts.
Here are the key points from the announcement.
- The OBR says the chancellor has restored “headroom” by 2029/30 – the amount of leeway a government has to cut taxes or increase spending while still sticking to self-imposed rules.
- The OBR has concluded the Government’s planning reforms would “help build over 1.3 million homes” in the next five years.
- The OBR has concluded the Government’s planning reforms would “help build over 1.3 million homes” in the next five years.
- OBR confirm that the reforms will permanently increase the level of real GDP 0.2% by 2029-30 an additional £6.8bn in our economy, and by 0.4% of GDP within the next 10 years – a further £15.1bn in our economy.
- In a crackdown on tax evasion, the Chancellor announced an investment into cutting edge tech to help the HMRC, raising a further £1bn and taking the total to £7.5bn.
- Key spending and investment includes: • £4.8bn worth of welfare cuts • £2bn savings from a reduction in civil service jobs • £2.2bn towards defence spending this year • Capital spending is increased by an average of £2bn a year • £1bn investment to help people back into work
MHA can help
We can help you adapt and reassess your tax and financial plans in the light of any new legislative changes, and ahead of the next full Budget in Autumn.
Contact your usual MHA adviser or your nearest office for guidance on the measures announced or to discuss other tax matters, and we will be happy to assist with any queries.
