The Chancellor of the Exchequer, Philip Hammond, has announced that the government will publish its Spring Budget on Wednesday 8 March 2017. So with this day fast approaching, at Alexander & Co, we are here to share some insights on what it’s all about.
What is the Spring Budget about?
The Spring Budget is an annual event that lays out the Government’s plans for the economy. Through using forecasts from the Office for Budget Responsibility, announcements made on March 8th will have an impact on household finances. That’s why it’s always worth tuning in.
The final Spring Budget
In theory, this will be the last budget to take place in spring. Mr Hammond announced in November that he would be sticking to one fiscal event in autumn. This means that 2017 will have two budgets.
The adjustment will mean that both the public and businesses will receive less frequent updates to the tax system which will hope to provide more certainty and stability. The Government also want to make sure finance bills get Royal Assent in time for April, as these set out legislative changes to the tax system.
The new timetable
To make thing a little more confusing, there will be another budget before the year is over. This is to switch to a new timetable.
Most of the measures proposed at the Autumn Budget will be subject to policy consultation in the spring, and publication of draft legislation in the summer. It will then be legislated in the Finance Bill after the following Autumn Budget. The 2016/17 tax year will end on April 5th as usual.
What can you expect?
This year, the Chancellor will intend to make the major announcements in the Autumn Budget. The Spring Statement is simply a response to the updated Office for Budget Responsibility forecasts for the economy and public finances
With the Autumn Budget taking place later on in the year, it’s unlikely there will be any major changes in spring. As Hammond prepares for the Autumn Budget, it’s likely there will be a host of consultations in the coming months. Having said this, the chancellor has previously pulled out a few big surprises in the past. This will be a case of just waiting and seeing.
As usual, the team at Alexander & Co will be ready to report back with the announcements with our Spring Budget breakdown. Make sure you swing by to discover how this budget may affect you.