Against the backdrop of the braying MPs in the House of Commons, the Chancellor of the Exchequer Jeremy Hunt delivered his Spring Budget to the nation.
The recurring theme of the budget speech was rewarding work for hard-pressed families. Workers’ National Insurance contributions (NICs) are to be reduced for the second time in just over four months but also reform and digitisation of public sector services was a major theme.
The Chancellor made it clear that the government are prepared to invest in more efficient public services so long as there is a productivity saving. So, whilst there was further money announced for services such as the NHS and law enforcement (including HMRC’s activities), it is clear that tax cuts are being funded by anticipated growth in the economy and also expected productivity gains in our essential services.
The tax cuts announced were widely leaked and included relaxation and reform of the unpopular High Income Child Benefit Charge, an increase in the VAT registration threshold (the first in seven years), and the lowering of NIC rates for workers.
Disappointingly, in a region where tourism plays such a vital role in our local area economy, the abolition of the Furnished Holiday Letting rules from April 2025 will bring decision-making about the deployment of residential property used for short-term letting into question, as all of the helpful tax breaks for this market are now to be withdrawn. This may also be why a cut was announced to the higher rate residential CGT rate which was unexpected.
Summary of the key announcements
Our Budget summary covers all the main announcements – click on the icons below to read more about the main points outlined by Chancellor Jeremy Hunt.
If you are affected by any of the measures announced and want to know more, please get in touch with your usual M+A Partners contact who will be pleased to help.
