Philip Hammond technically made history this week by breaking convention and hosting the first ever Spring Statement in place of an official Budget.
There was no iconic photograph of the Chancellor dangling his red briefcase for the cameras outside 11 Downing Street, and this watered-down version of the old spring Budget was unsurprisingly low on new information.
Nonetheless, Mr Hammond did mention a few intriguing points in his political address worth decoding. In our latest blog, we do just that – extracting the key elements from the Spring Statement that are relevant for small and medium-sized business owners.
Will the proposed changes come true?
Following a critique of opposition policies, The Chancellor of the Exchequer proudly confirmed eight consecutive years of economic growth for Britain under the Conservative regime.
With borrowing, debt and inflation all down on previous years, Mr Hammond promised that the Government would be pumping as much as £80m into the small business sector over the coming months – strengthening the economy further.
After announcing that business rates would now be re-evaluated in 2021 (rather than 2022 as first planned), Mr Hammond also suggested his upcoming Autumn Budget would contain information on VAT system reform, which would benefit any businesses earning over the £85,000 threshold.
If you fall into this category, it’s fine to feel optimistic about the future – but we recommend you move forward with caution. Realistically, we won’t know anything until the real Budget announcement in November, which is why Mr Hammond smartly spoke of VAT reform in vague terms only.
The Spring Statement offered tentative hope for the future of the British business sector, even with the uncertainty of Brexit looming above our island. But the reality is that we can’t be sure of any facts until November. For a clearer, more beneficial insight into how your business is likely to be affected by the current economic climate, it’s worth turning to another political address altogether – one that’s far closer to home…
Deeper insight: The Greater Manchester Chamber of Commerce quarterly review
On 23rd March 2018, The Greater Manchester Chamber of Commerce Quarterly Economic Breakfast takes place at Elliot House on Deansgate. As a gathering based on regional data and real experiences of familiar businesses, this can often prove a much better indicator of the current economic climate for small to medium-sized businesses in the Greater Manchester area.
Whilst the Spring Statement provided a non-committal overview of the UK economy as a whole, the GMCOC quarterly review offers tangible insight into the issues with potential to affect your business directly.
Talk to Nabarro Poole today
If you’d like to know any more information about the GMCC Quarterly Economic Breakfast, please do not hesitate to give us a call on 0161 998 4276 today.
For accounting services, our team would also be delighted to help in any way they can – providing you with timely management accounts and business advice, as well as budgeting, forecasting and tax planning to financially prepare your business. Contact us now to arrange a free initial meeting.