The Chancellor used the Spring Statement to announce the government’s Tax Plan and the implementation of the first stage of that plan.
The three part Tax Plan outlined how the government will support families faced with rising living costs by reducing taxes, reward investment and innovation with tax reliefs to increase growth and productivity and reduce the basic rate of income tax from 20% to 19% on 6 April 2024.
However, the Spring Statement is lacking in ambition and is unlikely to help families cope with the rising costs of living or businesses trying to keep their prices affordable while being squeezed by higher energy and materials costs.
The Tax Plan is also underwhelming and smacks more of electioneering than responsible fiscal policies designed to ensure that the UK economy recovers from the impact of Covid and Brexit which have resulted in its economy shrinking more than most of its competitors in Europe.
Get in touch with your client manager or our dedicated Tax team if you have any queries or if you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Spring Statement speech.
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