There seemed very little in the Budget that hadn’t already been announced, that was noteworthy. The measures were generally aimed at helping people on low incomes, or businesses in specific sectors.
The Chanceller confirmed the increase from April of the National Living Wage and the National Minimum Wage and his ‘rabbit out of the hat’ at the end was to announce an imminent reduction in the Universal Credit taper – which he dubbed a ‘tax on working’ – from 63% to 55%.
For those middle income earners, there was very little, other than perhaps the announcement that fuel duty will be frozen.
Little was said about taxation, other than the Annual Investment Allowance remaining at £1m until March 2023, which is welcome.
We are interested to see what the planned reforms to business rates will be, and the new investment relief and business improvement relief sound positive, but as is always the case the devil will be in the detail.
Businesses that have done best out of this Budget are those in hospitality, leisure and retail, which will enjoy a 50% cut in their business rates, and those which can benefit from R&D.
We will be sending a full Budget summary, analysing the impact of the measures announced. To receive your copy, please email Tracey Heath.