The Budget before the trigger is pulled

Posted on 8th March 2017 by Streets -  What's trending?

Image to represent The Budget before the trigger is pulled

Overall it was a Budget Statement that left most, if not all, with a sense that our lives remain very much the same as they did before the Chancellor delivered his statement, both from a business and a personal perspective. Should we have expected more? Perhaps not.  With an economy deemed to be more resilient than expected post Brexit, tax revenues up and growth better than forecast, what else needs to be done? 

With Article 50 to be triggered before the end of the month, perhaps the Budget was as much maintaining the status quo and making a statement that the UK is open for business and ready to face the challenges as we decouple ourselves from the EU.  Much of this is about ensuring the UK is competitive and productive, which relies on investment in technologies, infrastructure and skills. At the same time we need to remain attractive for businesses in terms of tax take as well as for individuals in terms of the standard of living they enjoy.

Businesses no doubt welcomed the proposed simplification in the admin for tax relief for Research and Development and the introduction of Technical training for 16 -19 year olds with T levels. In addition, those concerned about the impact of the new Business Rates will have welcomed the support and relief they can receive. Equally those businesses and self employed that trade below the VAT threshold will welcome the decision to defer the requirement for them to do complete quarterly digital tax returns and their take up of ‘Making Tax Digital’ by a further year.

Perhaps greater concern should be around the Chancellor’s intention to look into the differing tax regimes and the implications enjoyed by the self employed. Seemingly he will be looking into the use of differing trading entities giving rise to inequalities or inconsistencies in the tax – this is likely to be a target for his Autumn Budget. His attack on the use of dividends through incorporation by business owners, with a reduction in the tax free amount which can be paid from £5,000 to £2,000, is a warning of things to come.  This, along with the 1% increase announced for Class 4 Nic which is payable by the self employed.

Whether the Chancellor has done enough in terms of addressing the often complex and growing demands on the NHS and social care it is hard to say. Whilst additional funding of £2 billion for care no doubt is good news, perhaps it might only be a drop in the ocean.  Again we will have to wait and see what incentives or tax treatments might be put in place in the Autumn Budget to meet the cost of looking after an ageing population.

Whilst Spring is a time for green shoots and optimism, the 2017 Spring Budget probably left most of us with more of a feeling of a dull grey day.  Let’s hope the second Budget of 2017 is more Autumn Gold.



No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.


The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.

Expert insight and news straight
to your inbox

Related Articles

Budget 2024: Changes to the Non-Dom Regime and their Implications

In the wake of the Budget 2024 announcements, significant changes to the UK's non-domiciled individual (non-dom) regime are on the horizon, with scheduled implementation for 6 April 2025. However, uncertainties loom, especially considering the potential shift in political power after the next General Election. While the outlined reforms ...

How do you avoid financial forecasting that ends up with rain instead of sunshine?

Financial forecasting can often feel like the weather forecast, financial predictions not always being as rosy as planned, or in many cases, as hoped - a bit like the weather whilst sunshine is predicted rain all too often can be the outcome.  Whilst many businesses will look to ...

Working Capital Cycle

The longer the working capital cycle, the more time it takes for your business to get a robust cash flow. It’s good practice for businesses to manage their cycle by looking at each step where possible. This could be by selling stock or product quicker, collecting monies owed ...

You might also be interested in...