It was not a major surprise that the Chancellor did not have any major revelations in store during the Spring Statement.
The speech was clearly compiled a week prior to the announcement, before conflict broke out in the Middle East, threatening the global economy.
As economic situations change rapidly and the new tax year looms, it is worth understanding whether the lack of change is ultimately good or bad for businesses.
What was announced in the Spring Statement?
As nothing new was announced in the Spring Statement, businesses and individuals are left to continue planning for the previous changes announced in the Autumn Budget.
The Office for Budget Responsibility (OBR) forecast was positive, indicating that there would be modest growth in the coming years and that borrowing could gradually fall.
However, the outbreak of conflict in the Middle East was only lightly touched upon by the Chancellor.
This meant that there was no indication of how the UK economy would be primed to respond to global economic uncertainty that would be driven by the conflict and rising petrol and gas prices.
The slightly less unstable global economy that existed when the Spring Statement was put together may have benefited from a lack of sweeping changes, but the change in circumstances has resulted in more uncertainty and questions.
What is the impact of the Spring Statement?
Many businesses felt overlooked by the Autumn Budget.
In the build-up to the Spring Statement, there was some slight speculation that the proposed increase to the National Minimum Wage might be delayed or reversed.
This is due to the rising rates of youth unemployment and the increased costs that are making things difficult for businesses.
However, no such policy manifested and while halting the increase to Minimum Wage would have upset the young people impacted, it would have signalled a willingness to listen to concerns from businesses.
Even if wage increases were still planned, some other form of relief could have been extended to businesses in order to improve their financial dynamism in the current economic climate.
While the Chancellor may not have acknowledged the strain that would be coming to businesses, our team is aware of the challenges you may face in the coming months.
We can help you assess your current financial position and stay compliant with the changes that are being brought about by the Autumn Budget and the Employment Rights Act.
