The Chancellor of the Exchequer, Philip Hammond, delivered his 2019 Spring Statement on 13 March. Our Private Wealth experts give their comments on the announcements.
James Hender, Head of Private Wealth at Saffery Champness, comments on the announcements:
“As expected there were few rabbits that emerged from the Chancellor’s hat, although if the OBR’s predictions about an increase in the number of people in work come to fruition, this will mean a welcome increase in payroll taxes for the Treasury.
“The Chancellor has announced the mandatory banning of fossil fuel heating systems in homes from 2025. The direction of travel on fossil fuels is clear, but ultimately this will leave a huge hole in the government’s finances. Fuel excise duty is one of the largest single sources of tax revenues and so if the government continues to move towards banning fossil fuels it will have to work out where the extra money will come from.”
Lucy Brennan, Partner at Saffery Champness, comments:
“As we wait for a deal, and the ultimate Brexit impact, the robust economy and forecast continued growth are good omens for the public purse. With the government securing over £200 billion of tax that would otherwise have been unpaid since 2010, it is clear the net is tightening on avoidance and the tax gap is getting ever slimmer.
“The announcement that 240,000 taxpayers have been helped onto the property ladder with Stamp Duty Relief is promising, and the extension of the relief to shared ownership property during the last Budget is likely to increase these numbers even further.
“While it had been predicted that Making Tax Digital (MTD) would be extended to income tax next year, we welcome the news that the government will not be introducing MTD to any individuals or businesses in 2020. This will give people more time to get to grips with any new system and give HMRC the necessary time to educate in advance of future transition.”