Chancellor of the Exchequer, Philip Hammond has confirmed to MPs on the Treasury Select Committee that the next statement on the UK’s fiscal landscape, the Spring Statement 2018, will be held on Tuesday, 13th March.
Traditionally, during the last two decades, the Chancellor has delivered the UK Government’s Budget in the spring. Nevertheless, Mr Hammond has altered the fiscal timetable to ensure the Government only makes one “major fiscal event” each year, with the Spring Statement designed to discuss long-term issues facing the country.
The Chancellor believes the change will enable better examination of any fiscal changes ahead of their implementation. Hammond will use the Spring Statement 2018 to respond to revised forecasts from the Office for Budget Responsibility (OBR) and publish consultations – including discussions on long-term tax policy issues.
“There will be more time available to scrutinise draft tax legislation ahead of its introduction and commencement,” said Hammond.
“Businesses and individual taxpayers should face less frequent changes to the tax system, helping to promote certainty and stability.”
The Chancellor has stated he will not use the Spring Statement 2018 to make any sizeable tax or spending declarations, unless the UK’s economic circumstances require it. Depending on the outcome of the UK’s continued discussions regarding its departure from the European Union (EU), Hammond could deem it necessary to intervene.
Late last month, the Chancellor delivered his inaugural Autumn Budget 2017, announcing a string of investment packages to drive forward the UK housing market and the country’s small business community, which contributes a whopping £1.8 trillion to the national economy.
For a full run-down of the key points relating to UK small business owners from Autumn Budget 2017, read our in-depth summary here.