The Chancellor of the Exchequer will present the UK’s Autumn Budget of 2018 on 29 October.
The Government has already made a promise to increase spending on the NHS by 3.4 percent per year for the next five years – an additional £16 billion in real terms, according to the Institute for Fiscal Studies (IFS). This will require higher taxes or cuts in spending elsewhere. The Chancellor may be considering rowing back on some of the planned increases in the personal income tax allowance to £12,500 and the increase in the higher rate threshold to £50,000. He may also look to shave further pensions tax relief.
As the uncertainty of Brexit looms, business may well be hoping the Chancellor adopts a ‘wait and see’ approach on significant tax changes and keeps them to a minimum. But that doesn’t mean measures to encourage innovation and productivity wouldn’t be welcomed.
With the woes of the High Street at the forefront of people’s minds there has been much discussion about whether the Chancellor will announce some form of tax on online sales with the intention of levelling the playing field for bricks and mortar retailers. After recent comments from the Chancellor at the Conservative Party Conference this looks to be an area where we are likely to see some form of consultation or status report although actual law may still be a way off.
To keep up to date with the Autumn Budget, please visit our dedicated webpage. Here you can find our predictions of what the Budget might have in store and, after the Budget, our commentary on the key announcements.